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BlackRock beats profit expectations as net inflows rise to $65bn

BlackRock profitsBlackRock has surpassed analysts’ profit expectations for the first quarter of the year, bouncing back after a volatile end to 2018 with net inflows of $65 billion (€57 billion) representing an organic growth of 4%.

Despite a fall in operating income, the US-based firm’s total assets under management (AuM) grew by 3% to $6.52 trillion compared to the same period last year.

Investors jumped into the firm’s fixed income products which saw net flows of nearly $80 billion, balancing a loss of more than $26 billion in its equity portfolio.

The world’s largest asset manager sold an overall total of $59 billion in stock, bonds, and other long-term funds.

Net income attributable to BlackRock dropped to $1.05 billion ($6.61 per share) throughout the first quarter of 2019, from $1.09 billion ($6.68) the year before, still beating analysts’ forecasts of $6.13 profit per share, according to data from Refinitiv.

The business’ chairman and chief executive Larry Fink highlighted the performance of BlackRock’s iShares ETFs, which took in $30.7 billion in net inflows, once again capturing “the number one market share of global ETF industry flows”.

BlackRock also saw a year-on-year growth of 11% in technology services revenue, driven by its Aladdin technology business.

“The combination of eFront with Aladdin will set a new standard in investment and risk management technology, vastly expanding Aladdin’s alternatives capabilities and providing a whole-portfolio technology solution to clients,” Fink said.

There was, however, a 7% drop in revenues to $3.3 billion from $3.6 billion causing the fall in diluted earnings per share.

Base fees also decreased to 5% year-on-year, primarily due to negative markets in the fourth quarter of 2018 and a strengthening US dollar.

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