Summary: In a new survey conducted by Citi Private Bank, law firm revenue has increased in the first six months of 2014 compared to the same period in 2013.
Citi Private Bank conducted a survey of 174 law firms that found continued signs of health in the first half of 2014, according to The Daily Record.
Gains in revenue in the first half of 2014 came from higher rates and an increased demand for legal services. Both of these categories surpassed growth in expenses for the first half of the year.
The firms that saw the best results in the survey are from the top 50 firms by revenue as ranked by American Lawyer. The reason for this is that these firms saw an increase in transactions and an increase in global work, according to John Wilmouth.
Wilmouth is a senior client adviser for Citi Private Bank Law Firm Group.
In an interview with The Daily Record, Wilmouth said that the top 50 firms “at times in the last few years were performing the worst, but in the cycle we’re in, these firms are benefiting the most.”
When comparing data from the first half of 2014 to the first half of 2013, the top 50 law firms saw their revenue increase by 5.9 percent. Their expenses increased by just 2.1 percent. The top 100 firms saw an increase in revenue of 2.1 percent and a 1.8 percent increase in expenses.
Firms in the top 200 saw an increase of revenue by 2.7 percent and expenses increased by 2.4 percent. Smaller law firms experienced a drop in revenue of 0.5 percent and expenses increase by 1.6 percent for the first half of 2014.
The largest increase in revenue occurred in Southern California law firms, which saw an increase of 9.1 percent. In Chicago law firms, revenue jumped by 6.4 percent and demand jumped by 3.4 percent. The demand data is the largest for any region of the country.
New York law firms saw an increase in revenue of 2.8 percent and a 4.4 percent increase in the firm’s rates.
Wilmouth noted that the revenue increases came from redistribution of work.
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