By Casey Sullivan

Jan 28 (Reuters) - Law firm revenue, net income and profits per partner all rose in 2012, according to a year-end report by Wells Fargo released on Monday.

For 100 law firms surveyed confidentially by the bank, gross revenue in 2012 increased by five percent. Net income rose six percent and profits per partner rose five percent, according to the report.

The year-end growth results are the best Wells Fargo has reported since 2008, according to Jeff Grossman, head of the bank's legal specialty group.

Grossman cited the fiscal cliff negotiations between the Obama administration and the U.S. Congress over automatic tax hikes scheduled for Jan. 1, as one possible driver of the revenue growth. In late 2012 and early 2013, some law firm said their mergers and acquisition, tax and trust and estates practices received extra work in the fourth quarter because clients were preparing for tax hikes.

An earlier survey by Wells Fargo, released in November, showed that law firm revenue in the first three quarters of 2012 increased 3 percent over the first three quarters of 2011.

The third-quarter report also pointed out that law firm borrowing had risen, with loans in 2012 on average a third higher than they were in 2011. That was a sign that law firms were increasingly relying on debt to fund their operations, the report said.

Grossman cautioned that law firms should still look for ways to save costs in 2013. He said that the revenue growth was driven by a select group of top law firms.

"Top law firms are getting what little premium business there is," Grossman said in an email.

The Wells Fargo report said that Florida, Southern California, and regions in the Southeast, outpaced other areas in the United States with revenue increasing by eight to 11 percent. 

Follow us on Twitter @ReutersLegal | Like us on Facebook