Head of Advisory Services, Law Firm Group
John Wilmouth, Senior Client Advisor
March 8, 2019Posted InLaw Firm Group
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In 2018, law firms posted their best results in a decade
We are pleased to announce the release of Citi Private Bank Law Firm Group’s FY 2018 Quarterly Flash Report, which provides an overview of current financial trends in the legal industry, as well as forward-looking insight. Our results are based on data collected through our Quarterly Flash survey of 191 law firms (75 Am Law 100 firms, 54 Second Hundred firms and 62 niche/boutique firms). Thirty-seven of these firms fit our definition of either international1 or global2.
The law firm industry last year posted its best results in more than 10 years.
Post-recession highs in demand and billing rate growth drove strong revenue growth—critical in a year where expense growth accelerated. As a result, the industry saw the strongest net income and profits per equity partner growth we’ve seen since 2007.
Am Law 50 firms and niche/boutique firms outperformed the rest of the industry on average, and the Am Law Second 50 were not far behind. And while dispersion remained, the good news is that we saw a larger proportion of firms enjoy demand growth. Even among the Am Law Second Hundred firms, whose performance as a group lagged the other segments, an increased proportion of firms saw demand improvement. With strong inventory growth at year-end, the industry is well-positioned for a strong start to 2019.
To read more about our findings, please refer to Inside Law Firms’ Best Results in a Decade, 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’s Quarterly Flash Reports, please contact us.
1 Between 10 and 25 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.