Magic circle firm Allen & Overy increased average profits per equity partner (PEP) by 10% in 2009/10 on the back of falling revenues, the firm reported today.

The first of the magic circle to report full-year financials in 2010, Allen & Overy announced PEP up to £1.1m from £1m in 2008/09, with turnover down 4% to £1.05bn from £1.09bn. Pre-tax profits fell slightly to £429m from £431m.

The firm’s non-UK offices accounted for almost 60% of turnover, up from 50% last year.

The firm said that its banking, litigation, regulatory and restructuring practices performed best.

Managing partner Wim Dejonghe said: ‘We have made strategic choices to secure future growth, and in doing so have built resilience into our business, enhanced our global reach and diversified our practice area mix. Our partners and staff have already risen to the challenge of adapting to our clients’ changing needs in uncertain and difficult times. While the outlook for the global economy remains uncertain, especially in some European markets, we are in the best possible shape to handle whatever challenges the market presents and to take advantage of any attractive opportunities that might arise.’

Allen & Overy also announced today that it has signed an association agreement in Indonesia with Jakarta firm Daniel Ginting, to provide banking and finance, international capital markets and corporate advice.

Dejonghe said Indonesia is one of the few countries whose GDP has continued to grow despite the financial crisis.

In 2009 and 2010 the firm has opened offices in Qatar, and Sydney and Perth in Australia.