BlackRock’s third-quarter profit rose 23% during a volatile stretch for markets.
The money management giant posted a profit of $1.68bn, or $10.89 a share, for the quarter ended September, up from $1.36bn, or $8.87 a share, a year earlier. The company beat analysts’ profit expectations.
BlackRock’s revenue increased by 16%. The operating margin for the quarter was 38.3%, down from 40.2% a year earlier.
Money managers’ assets and profits ballooned in the past year with the Federal Reserve pumping money into the economy and the stock market soaring.
Now investors have become more bearish on growing concerns about higher inflation, slowing U.S. economic growth, global energy shortages, and contagion from debt-laden property developer China Evergrande Group. Emerging markets’ selloff and lacklustre S&P 500 returns in the latest quarter dampened BlackRock’s asset growth.
The company now oversees $9.46tn for investors, up from $7.8tn a year earlier but slightly less than the second quarter. Choppy markets prevented BlackRock from getting closer to $10tn in assets, a symbolic milestone for the rise of the firm and its Chief Executive Larry Fink.
BlackRock became the world’s largest asset manager with the rise of index funds that track markets and exchange-traded funds that trade rapidly in the last decade.
It took in $75bn in net new money in the latest quarter.
Write to Dawn Lim at email@example.com
This article was published by Dow Jones Newswires