BlackRock beat earnings expectations as technology services drive growth in a 'volatile' market
- BlackRock saw its total assets climb to about $7 trillion, up 8% year-over-year.
- In its third-quarter earnings, released Tuesday, the world's largest asset manager boasted growing revenues in the wake of a "volatile" global market, however, the firm's profits were down 8%.
- CEO Larry Fink said that clients have entrusted $350 million worth of new assets in the last year to the firm "technology services revenue."
The world's largest asset manager is getting bigger.BlackRock said its total assets climbed over $6.9 trillion, up 8% year-over-year, it said in third-quarter earnings released Tuesday. The New York-based firm beat earnings expectations, with a 3% increase in revenue year-on-year, which the firm said was driven by "higher base fees and technology services revenue."Advertisement
However, the asset manager's net income fell by 8% year on year, to $1.12 billion from $1.22 billion.
"Clients have entrusted BlackRock to manage almost $350 billion in new assets over the last twelve months, validating the differentiation of our model." BlackRock CEO Laurence Fink said in the earnings statement."BlackRock generated $84 billion of total net inflows in the third quarter, demonstrating strength in fixed income, cash and alternative strategies, as clients re-balanced, de-risked and sought uncorrelated sources of return in the face of significant global market volatility," Fink added.
Here are the rest of the key numbers:
- Assets: $6.96 trillion, up 8% year-on-year (2018: $6.44 trillion)
- Revenue: $3.7 billion, versus analysts' expectations of $3.598 billion and up 3% year-on-year (2018: $3.58 billion)
- Net income: $1.2 billion, versus analysts' predictions of $1.085 billion and down 8% year-on-year (2018: $1.22 billion)
- Adjusted earnings per share: $7.15 which was down 5% year-on-year against expectations of $6.97
- Total net flows: $84 billion
- iShares: $41.5 billion
- Institutional: $4 billion
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