BlackRock profit beats estimates as assets grow to a record $9.5 trillion

BlackRock Inc, the world’s largest asset manager, reported a better-than-expected quarterly profit on Wednesday as investors poured more money into the company’s funds, driving robust fee growth and boosting its assets under management to a record high.

BlackRock’s assets under management jumped to a record $9.49 trillion in the second quarter from $7.32 trillion a year earlier.

The company continued to gather assets at a robust pace as investors deployed money across BlackRock’s product types and asset classes.

Global equity markets’ strength during the second quarter helped boost both assets under management as well as fee growth.

The U.S. economy displayed signs of a recovery over the past quarter, helped by large government stimulus and steady vaccination programs. Global financial market continue to display strength a year after the coronavirus pandemic crashed asset prices and hurt risk sentiment.

Net inflows for the quarter stood at $81 billion, driven by higher investments in BlackRock’s various funds, including its exchange-traded funds.

That figure is well below $81 billion, but well below the $172 billion record set in the prior quarter, with most of the decline due the loss of a $58 billion equity index mandate from a U.S. pension fund client, Sanders said.

The company’s adjusted net income rose to $1.55 billion, or $10.03 per share, in the three months ended June 30, from $1.21 billion, or $7.85 per share, a year earlier.

Analysts on average had expected a profit of $9.46 per share, according to IBES data from Refinitiv.

Revenue rose 32% to $4.82 billion, helped by higher performance fees and 14% growth in revenue from technology services.

BlackRock’s shares, which hit a record high on Monday, ahead of the results, rose 16% during the quarter ended June 30, compared with a 15% gain for a Thomson Reuters index that includes more than a dozen of BlackRock’s industry rivals in the United States.

BlackRock shares were down about 2% in trading before the bell on Wednesday.