Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

BlackRock assets cross $10 trillion, revenue slightly misses

Stock MarketsJan 14, 2022 12:51PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: The BlackRock logo is seen outside of its offices in New York City, U.S., October 17, 2016. REUTERS/Brendan McDermid

By Sohini Podder and Lewis Krauskopf

(Reuters) -BlackRock Inc's fourth-quarter profit beat analyst estimates on Friday, as the world's largest money manager's fee income rose and assets under management topped $10 trillion, but shares dipped as revenue slightly missed Wall Street estimates.

A strong finish to the year by global financial markets helped boost the performance of asset managers in general, with BlackRock (NYSE:BLK) also benefiting from its large scale and wide reach.

Assets under management stood at $10.01 trillion at the end of the quarter, up from $8.68 trillion a year earlier.

“It’s an impressive milestone and it just illustrates their dominance in the fastest growing areas within the industry,” said Kyle Sanders, analyst at Edward Jones. “They continue to gather assets at a remarkable clip.”

Net inflows for the quarter were at $212 billion, of which long-term net flows accounted for $169 billion, up from $116 billion a year earlier.

"Our business is more diversified than ever before – active strategies, including alternatives, contributed over 60% of 2021 organic base fee growth," Chief Executive Officer Larry Fink said in a statement.

BlackRock's revenue from investment advisory, securities lending and administration fees, its biggest segment, rose to $3.9 billion in the fourth quarter, helped by global dealmaking volumes rising to a record high in 2021, crossing $5 trillion for the first time.

Adjusted profit rose 2.5% to $1.61 billion, or $10.42 per share, in the quarter ended Dec. 31, from $1.57 billion, or $10.18 per share, a year earlier.

Analysts on average were expecting the company to report a profit of $10.16 per share, according to IBES data from Refinitiv.

Revenue rose nearly 14% to $5.11 billion, slightly below the consensus analyst estimate of $5.17 billion.

BlackRock shares were down 1.7% to $852.66 in morning trading. Markets have had a rocky start to the year as investors digest the expected move by the Federal Reserve to start raising interest rates to rein in rising inflation.

"2022 is going to be a transitional year for the entire asset management space,” said Cathy Seifert, an analyst at CFRA. "Investors need to take a little pause and examine what is sustainable and what is not."

BlackRock said it was targeting "record" investment in its business in 2022, including an expected increase in headcount by as much as 10%.

"Looking forward, they are going into investment mode again," Sanders at Edward Jones said. "They are going to spend a lot, and that is probably going to make it tough for them to really have meaningful profit margin and EPS growth in 2022.”

BlackRock shares rose nearly 27% last year compared with a 32% gain for the S&P 1500 asset manager and custody banks index.

BlackRock assets cross $10 trillion, revenue slightly misses
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email