Banks, Financial

Banking app targets millennials who want help budgeting

Graduate debt, rent and high living costs have made it hard for millennials to save for a house, a pension or even a holiday. For Ollie Purdue, a 23-year-old law graduate, this was reason enough to launch Loot, a banking app targeted at tech-dependent 20-somethings who want help to manage their money and avoid falling […]

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Eurozone inflation climbs to highest since April 2014

A welcome dose of good news before next week’s big European Central Bank meeting. Year on year inflation in the eurozone has climbed to its best rate since April 2014 this month, accelerating to 0.6 per cent from 0.5 per cent on the back of the rising cost of services and the fading effect of […]

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Wealth manager Brewin Dolphin hit by restructuring costs

Profits at wealth manager Brewin Dolphin were hit by restructuring costs as the company continued to shift its focus towards portfolio management. The FTSE 250 company reported pre-tax profits of £50.1m in the year to September 30, down 17.9 per cent from £61m the previous year. Finance director Andrew Westenberger said its 2015 figure was […]

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Travis Perkins and Polymetal to lose out in FTSE 100 reshuffle

Builders’ merchant Travis Perkins and mining company Polymetal face relegation from the FTSE 100 after their recent performances were hit by political events. The share price of Travis Perkins has dropped 29 per cent since the UK voted to leave the EU in June, as economic uncertainty has sparked concerns among some investors about the […]

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RBS share drop accelerates on stress test flop

Stressed. Shares in Royal Bank of Scotland have accelerated their losses this morning, falling over 4.5 per cent after the state-backed lender came in bottom of the heap in the Bank of England’s latest stress tests. RBS failed the toughest ever stress tests carried out by the BoE, with results this morning showing the lender’s […]

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Categorized | Financial

Deloitte to merge 9 member firms

Posted on October 4, 2016

Rotterdam , Netherlands-august 13, 2015: Deloitte office in Rotteerdam deloitte does Tax Accounting, Consultanc and Financial advice

Deloitte has put its money on closer European integration and is merging nine of its member firms across the region in a “Brexit-agnostic” deal that was conceived before the UK voted to leave the bloc.

The “big four” professional services group is combining its Belgian, Danish, Dutch, Finnish, Icelandic, Norwegian and Swedish member firms with its UK and Swiss operations to create Deloitte North West Europe, it announced on Tuesday.

    “This is client driven,” said David Sproul, Deloitte’s UK chief executive who is the chief executive-elect of Deloitte North West Europe. “The issues our clients are facing are around globalisation, growth and digitalisation of business models [ . . .] From a client needs point of view, Brexit hasn’t changed anything.”

    As part of the merger, Deloitte plans to invest €200m in the combined business over the next three years. It is looking to hire partners and teams, and make acquisitions particularly around areas such as consulting and digital. Technology-related activity makes up a growing part of the big four and they are pouring money into areas like cyber security, data analytics and artificial intelligence — expanding far beyond their roots in audit.

    The big four professional services firms — PwC, Deloitte, EY and KPMG — are structured as networks of legally separate national partnerships, which retain a significant degree of autonomy even though they share numerous co-operative agreements.

    Deloitte’s move marks a departure from the past, where closer integration of large accountancy networks has historically been avoided. Networks like to be able to distance themselves from a member firm if it runs into financial or reputational difficulties, in order to keep the global brand intact.

    More recently, cross-border activity and the need for multinational companies to co-ordinate areas such as cyber security and digital strategy have meant that clients have encouraged closer integration between countries. The Financial Times reported in May last year that Deloitte was considering acquiring or merging with member firms from the Benelux region.

    “I think Deloitte’s merger makes a lot of sense,” said Michael Izza, chief executive of the Institute of Chartered Accountants in England and Wales. “It’s a natural response from professional services firms to a global world. It’s a good vote for globalisation and internationalisation in a world where we have to justify the benefits of free trade because we can see protectionism creeping in.”

    Deloitte North West Europe will come into effect on June 1, will have 28,000 partners and people, and more than €5bn in annual revenue. Mr Sproul says the target is to grow this to €8bn-€9bn by 2020. It will be headquartered in the UK and regulated by the Financial Reporting Council.

    Mr Sproul said the deal was “Brexit agnostic”. He added: “Brexit has amplified the rationale for it. Brexit won’t reduce the appetite of UK businesses to invest across Europe or Deloitte’s appetite to play on a global business [ . . .] Success of this isn’t dependent on free movement of people in and out of the UK.”

    Europe is Deloitte’s fastest-growing region. Its UK revenues, which include the Swiss operation, grew 11.2 per cent in the 12 months to May 31 and surpassed £3bn for the first time. The UK member firm’s revenues are split between four divisions: consulting (27.9 per cent), tax (24.1 per cent), financial advisory (17.5 per cent), and audit and risk advisory (30.4 per cent). Globally, Deloitte reported $36.8bn revenues in 2016.