BlackRock earnings fall as quarterly revenue slides 10pc

BlackRock reported $103bn of quarterly long-term net inflows in its first quarter earnings on Friday, representing annualised organic asset growth of 5%, driven by continued momentum in bond exchange-traded funds (ETFs) and significant outsourcing mandates.

The US investment giant also reported $110bn of quarterly total net inflows, reflecting net inflows to its diversified cash management platform.

However, the company reported a 10% decrease in revenue year-on-year to $4.24bn, primarily driven by the impact of significantly lower markets and dollar appreciation on average assets under management, and lower performance fees.

Operating income and diluted earnings per share both saw an 18% decrease year-over-year, or 17% as adjusted, to a respective $1.44bn and $7.64.

First-quarter adjusted profit did, however, beat Wall Street forecasts for $7.78 per share, coming in at $7.93.

The board said the decrease in diluted earnings per share also reflected a higher effective tax rate, partially offset by higher non-operating income in the current quarter.

BlackRock did, however, announce $375m of share repurchases in the current quarter, and a 2.5% increase in its quarterly cash dividend, to $5.00 per share.

“BlackRock led the industry with $34bn of bond exchange-traded fund (ETF) net inflows, and accounted for over 60% of total fixed income ETF trading volume during the quarter,” said chairman and chief executive officer Laurence Fink.

“BlackRock ETFs once again proved their value as critically important tools for active management and in providing liquidity and transparency to clients.”

Fink noted that Aladdin continued to provide “best-in-class” portfolio and risk analytics, enabling clients to act “quickly and with clarity and confidence”.

“And clients turned to our $683bn cash management platform to manage risk, diversify, and enhance yields.”

At 0800 EDT (1300 BST), shares in BlackRock were up 1.23% in pre-market trading on the NYSE, at $679.00.

Reporting by Josh White for Sharecast.com.