PwC Fee Income
PwC UK had a fee income of 3.48 billion pounds in FY20 which is an increase of 0.5% from the prior year. For FY19 PwC UK had a fee income of 3.46 billion pounds. See below for a breakout of PwC fee incomes over the past five years. Fee income grew on an average of 4.8% over the past five years.
Looking at the break-down of fee income among audit clients and non-audit clients we notice that direct audit fees has increased on an average by 6% while non-audit services to audit clients has decreased on an average by 8%. Advisory income has increased on an average by 7% for 5 years. The table below shows the break-down in millions pounds.
PwC Quality Report
PwC’s UK 2020 Transparency report mentions that of the 17 audits reviewed, 11 (65%) audits were graded as good or limited improvements needed. 5 (29%) audits were graded as improvements needed. 1 (6%) audit needed significant improvement.
The Financial Reporting Council (FRC) published its latest inspection reports on PwC in July 2020. Of the 17 audits reviewed, 11 (65%) were graded as good or requiring limited improvements. 5 (29%) and 1 (6%) audits were graded as improvements required and significant improvements required respectively. For FTSE 350 audits, of the 12 audits reviewed, 8 (67%) were graded as good or requiring limited improvements. 3 (25%) and 1 (8%) audits were graded as improvements required and significant improvements required respectively. The summary of PwC’s inspection results for the past five years is noted below. In 2016, 82% of audits were graded as good vs. 67% in 2020.
PwC FTSE 350 Clients
PwC audits 95 of the 350 FTSE companies bringing in a total revenue of 336 million pounds. HSBC Holdings is the biggest client which brings in revenue of 110 million pounds, i.e. 33% of the total FTSE 350 audit fees. PwC has held the role of HSBC auditor for 5 years and will remain auditor until 2025 when the audit has be rotated per European rules on mandatory rotation. All 95 PwC clients and their audit fee is included in the below graphic.
The top 25 FTSE 350 audit clients of PwC in UK in the order of audit fee revenues are as follows:
| Company | Auditor | Total fees ('000) GBP |
|---|---|---|
| HSBC Holdings plc | PwC | 110,700 |
| Lloyds Banking Group plc | PwC | 26,900 |
| Aviva plc | PwC | 21,900 |
| Rio Tinto plc | PwC | 14,490 |
| Diageo plc | PwC | 12,100 |
| AstraZeneca plc | PwC | 11,245 |
| Rolls Royce Holdings Plc | PwC | 11,000 |
| G4S Plc | PwC | 10,000 |
| Pearson plc | PwC | 7,000 |
| Mondi Plc | PwC | 5,100 |
| Intertek Group plc | PwC | 4,700 |
| Coca-Cola HBC AG | PwC | 4,487 |
| Carnival plc | PwC | 4,377 |
| Johnson Matthey Plc | PwC | 4,000 |
| Bunzl plc | PwC | 3,700 |
| Weir Group plc | PwC | 3,400 |
| Babcock International Group | PwC | 3,200 |
| ContourGlobal plc | PwC | 3,170 |
| Burberry Group plc | PwC | 3,100 |
| Vivo Energy Plc | PwC | 2,974 |
Post a comment on any other metric you would like to know about EY UK or if you need this dataset. Look into our other blog posts on PwC, KPMG, and Deloitte UK. We are starting a new blogpost to collect the salary data to help all current and prospective employees of accounting firms. So if interested, update the form and results will be published soon.
Do read our other blog posts.
