BlackRock beat earnings expectations as technology services drive growth in a 'volatile' market

Larry FinkAP

  • 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."

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

BlackRock continued to see strong growth in its technology business, a key long-term focus as the firm seeks to differentiate itself from other asset managers. Rising revenue from Aladdin, the investment-management platform, drove technology services revenue up 30% to $259 million, or 7% of the firm's total revenue.

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