- Baker McKenzie said revenue grew 5.5% to $3.3 billion
- Net income remains flat after last year’s big jump
Revenues grew modestly last year and profits stayed flat for global law firm Baker McKenzie, as the legal industry adjusts to softer client demand.
Chicago-founded Baker McKenzie, the largest law firm in the US by attorney head count, saw net income hold steady at $1.24 billion in the fiscal year that ended June 30. The firm called that figure “on par” with the previous year, when it reported a 36.7% year-over-year spike in profits.
The firm reported record revenue of $3.3 billion, representing a 5.5% increase from a year earlier. Baker McKenzie crossed the $3 billion threshold for the first time that year.
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Baker McKenzie said in a statement that profits were flat “despite a partial cost rebound in recent months as the firm returns to a more normalized mode of operation post pandemic,” and invests in talent, technology and space adjustments.
Broken down by region, the firm reported a 12.1% revenue increase in North America, and slower growth elsewhere. Revenues were up 3.3% in the Asia Pacific region, 3.4% across EMEA and 4.1% in Latin America, the firm said.
The financial results come as industry watchers wait to see how law firms are faring after generating record profits in 2021, particularly given a global cooling off in merger and acquisition activity.
The combination of decreasing demand for legal services and rising expenses has created financial headwinds for firms in 2022, according to a second quarter data analysis by Thomson Reuters Institute, which shares the same parent company as Reuters.
Baker McKenzie said certain “standout” practice areas that contributed to growth included private equity, which surged 25.7% in the recent fiscal year.