BlackRock today reported a record high of $10.5trn in assets under management, up $1.4trn year-on-year, in its financial results for the three months ended March 31, 2024.
Chairman and CEO Laurence D. Fink said there was also “significant growth potential in infrastructure, technology, retirement and whole portfolio solutions, with a strong pipeline that has some of the best breadth that we’ve ever seen”.
The global asset manager said the AUM growth was “driven by consistent organic growth and positive market movements”.
It also saw $76bn of quarterly long-term net inflows reflecting “continued strength of broad-based platform with positive flows across asset classes and client types”, and $57bn of quarterly total net inflows which also reflected seasonal outflows from cash management.
There was an 11% increase in revenue year-over-year, “primarily driven by the positive impact of markets on average AUM, organic base fee growth, and higher performance fees and technology services revenue”.
In addition, BlackRock reported:
- 18% increase in operating income year-over-year (17% as adjusted)
- 37% increase in diluted EPS year-over-year (24% as adjusted) also reflects higher nonoperating income and a lower effective tax rate in the current quarter
- Issued $3 billion of debt to fund a portion of the cash consideration for the planned acquisition of Global Infrastructure Partners $375 million of share repurchases in the current quarter and 2% increase in quarterly cash dividend to $5.10 per share.
Fink said: “BlackRock’s momentum continues to build, with accelerating client activity and line of sight into the funding of significant wealth, institutional, and Aladdin mandates. Organic asset and base fee growth accelerated into the end of the quarter, and first quarter long-term net inflows of $76 billion already represent nearly 40% of full year 2023 levels.
“Clients are turning to BlackRock to unlock the full potential of their portfolios, reflected in industry-leading total net inflows of $236 billion over the last twelve months. We continue to deliver sustained asset and technology services growth at scale, with a double-digit increase in technology services revenue, 180 basis points of margin expansion and
24% growth in EPS year-over-year, as adjusted.
“Being a growth company requires our continual innovation, investment, and client focus. BlackRock has stayed connected with our clients and invested in our platform over years, in anticipation of clients’ evolving needs. Through this connectivity, we are having richer conversations with clients than ever before about their whole portfolio and in many cases deepening our relationships with them.
“With markets full of complexity and opportunity, clients are increasingly coming to BlackRock for insights and advice. We see significant growth potential in infrastructure, technology, retirement and whole portfolio solutions, with a strong pipeline that has some of the best breadth that we’ve ever seen. We will continue to stay in front of client needs to deliver long-term growth for our clients, shareholders and employees.”
