Investment giant Blackrock today reported a large increase in profits in spite of a small fall in assets under management (AUM) and a warning over market uncertainty.
Net income rose by 26 per cent year-on-year in the second quarter to reach $1.07bn, the firm said today. Earnings per share of $6.66 – which have been boosted by US government tax cuts – beat consensus forecasts by more than 1.5 per cent.
Revenues rose by 11 per cent year-on-year to hit $3.6bn, slightly above analyst expectations, driven by growth in investment advisory, administration fees and securities lending revenue, which rose by $701m compared to the same quarter last year.
AUM at the world's largest asset manager fell slightly compared to the previous quarter from $6.32 trillion to $6.29 trillion, as a strengthening dollar cancelled out the effects of $20bn fund inflows by making overseas assets less valuable in US terms. However, AUM remained more than 11 per cent higher than the same point last year.
Larry Fink, Blackrock chairman and chief executive, said the firm had announced "strong financial results" and added the firm has "seen markets like these before".
He said: “Despite an industry-wide slowdown in flows associated with investor uncertainty in the current market environment, our dialogue with clients and opportunities to provide long-term solutions are more robust than ever before."