Head of Advisory Services, Law Firm Group
John Wilmouth, Senior Client Advisor
August 27, 2018Posted InLaw Firm Group
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Revenue growth of 5.5 percent in the first half of 2018 was the highest since 2007, and the outlook going forward remains positive.
We are pleased to announce the release of Citi Private Bank Law Firm Group’s Q2 2018 Quarterly Flash Report, which provides an overview of current financial trends in the legal industry, based on data collected through our Quarterly Flash survey of 186 law firms (77 Am Law 100 firms, 53 Second Hundred firms and 56 niche/boutique firms). Thirty-six of these firms fit our definition of either international1 or global2.
Historically strong revenue growth on the strength of a pickup in demand and solid rate increases, together with moderate expense growth through the first half of 2018, have the law firm industry well ahead of last year’s first-half performance.
However, behind the industry averages, we continued to see dispersion across the industry, with the market favoring the largest and smallest firms during the first half. Looking ahead, the revenue outlook for the rest of 2018 is very positive, with a solid buildup in inventory heading into the third quarter. The industry will need this, given the upward pressure on expenses we expect to see in the second half of the year as firms absorb the recently announced salary increases.
To read more about our findings, please refer to Law Firms Just Turned in Their Best Half Since the Recession, an article authored by Citi Private Bank's John Wilmouth and Gretta Rusanow in The American Lawyer.3
For more information about Citi Private Bank Law Firm Group’s Quarterly Flash Reports, please contact us.
1 Less than 25 percent but more than 10 percent of lawyers based outside the United States.
2 At least 25 percent of lawyers based outside the United States.
3 A free subscription may be required to access the full article.