(Reuters) – BlackRock beat second-quarter profit estimates on Friday as investors continued to pour money into its various funds as markets rallied after a tough start to the year.
The world’s largest asset manager ended the second quarter with 9.4 trillion dollars (8.380 billion euros) in assets under management, compared to 8.5 trillion dollars a year earlier and 9.1 trillion dollars in the first quarter of This year.
BlackRock’s revenue fell 1.4% to $4.4 billion from a year earlier, due to the impact of market movements over the past 12 months on average assets under management, the company said.
“Revenue growth has been weak and may remain under pressure in the near term until there is more clarity on the path of inflation and economic growth,” said Kyle Sanders, analyst at Edward Jones.
BlackRock’s net inflows for the quarter were $80 billion, down from $89.6 billion a year ago.
The group posted a 25% increase in its second quarter adjusted profit on Friday, driven by gains in its investment funds.
Adjusted earnings were $9.28 per share, beating analysts’ estimates of $8.46, according to Refinitiv IBES.
Larry Fink, chairman and chief executive of BlackRock, said in a statement that customers consolidated more business with the company, which helped boost inflows into exchange-traded index funds (ETFs).
(Reporting Jaiveer Singh Shekhawat in Bangalore; French version Nathan Vifflin and Augustin Turpin, editing by Kate Entringer)
Copyright © 2023 Thomson Reuters