Average profits per partner at Allen & Overy (A&O) exceeded £1 million for the first time last year as turnover at the City legal giant jumped 21 per cent to reach £887 million.

The £1.03 million average profits per partner (PEP) figure – calculated by dividing profits by the number of partners that own a share in the firm – puts A&O just ahead of rival Clifford Chance that reported average PEP of £1.02 million last month.

The most senior A&O partners will earn £1.54 million with junior partners pocketing £616,000.

Guy Beringer, senior partner, said: “The success of our financial results is in part a reflection of the booming market conditions of the past 12 months. It is also a reflection of a truly impressive client list and market-leading work across all jurisdictions and disciplines.”

Mr Beringer said he was particularly pleased with the firm’s recent surge in corporate and mergers and acquisitions work. “Historically banking and capital markets have been our strongest areas but that view now needs to be re-assessed. We have become very strong in corporate and M&A across North America, Asia and Europe,” he said.

Elsewhere, new offices in Riyadh, Abu Dhabi, Düsseldorf and Mannheim helped swell revenues. David Morley, managing partner, said the firm would continue to invest in new areas highlighting Russia, China and India as areas earmarked for future growth.

Despite an overall bullish tone, Mr Beringer acknowledged that it was “improbable to expect the current favourable markets to continue indefinitely.”

“We’re working flat out to service the bull market with one eye on what’s coming around the corner,” Mr Beringer said.

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