A 13% increase in revenue in its consulting practice has helped the UK's largest accountancy firm, PwC, deliver more than £700m in profits to its partners.

Overall, the firm's fee income increased 7% to reach £2.62bn for the year ended 30 June 2012, up from £2.46bn in the previous year.

Assurance accounted for nearly £1bn of revenue, up 6% on 2011, boosted by significant audit wins such as insurance giant Aviva and Dubai World, the state-owned conglomerate.

Growth in its tax practice was more muted, with fee income up only 2% to £659m, while the deals practice, which includes corporate finance grew 8% to reach revenues of £561m.

Total profit for the year stood at £727m, up from last year's £656m, while average profit per partner increased from last's £763,000 to £798,000 in 2012. However, actual distributable profit per partner fell 4% from £707,000 to £679,000 following payments made to retired partners.

PwC senior partner Ian Powell, whose own £3.5m pay packet remained the same as last year, said the firm saw growth potential in its consulting, risk assurance, forensic and actuarial businesses, as well as in the Middle East. He also predicted growth in the firm's private business practice, which grew 7% in 2012. 'We see significant potential for increasing our market share in the private and fast growing company sector,' he said.

Despite continuing economic uncertainty, Powell was bullish about prospects for the future, confident that the firm would maintain levels of staff recruitment. 'We will continue to invest to ensure we are able to support the economic recovery when it comes and plan to maintain our record recruitment levels in the coming year,' he said.