BlackRock earnings: net inflows at $76 billion, AUM hits record high of $10.5 trillion

BlackRock, Inc., the global investment management corporation, announced its financial results for the first quarter of 2024, showcasing robust performance that surpassed analysts’ expectations.

The company reported significant milestones across various metrics, reflecting its continued growth momentum and strategic initiatives.

BlackRock net inflows at $76 billion

One of the key highlights of the quarter was the impressive $76 billion in quarterly long-term net inflows, indicating the enduring strength of BlackRock’s diverse platform. These inflows were characterized by positive flows across different asset classes and client types. Additionally, there were $57 billion in quarterly total net inflows, with seasonal outflows from cash management being offset by other positive inflows.

BlackRock achieved a record $10.5 trillion in assets under management (AUM), marking a substantial increase of $1.4 trillion year-over-year.

This growth was propelled by consistent organic expansion and favorable market movements throughout the period.

What BlackRock CEO said

Laurence D. Fink, Chairman and CEO 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.”

BlackRock revenue jumps 11%

The company also reported an 11% year-over-year increase in revenue, driven by several factors including the positive impact of market performance on average AUM, organic base fee growth, and higher performance fees and technology services revenue.

Operating income witnessed an 18% increase compared to the previous year, demonstrating BlackRock’s operational efficiency and strong financial performance.

Moreover, BlackRock’s diluted earnings per share (EPS) surged by 37% year-over-year, reaching new heights. This significant growth was further supported by higher non-operating income and a lower effective tax rate in the current quarter.

In line with its strategic objectives, BlackRock announced the issuance of $3 billion in debt to partially fund the planned acquisition of Global Infrastructure Partners, showcasing its commitment to strategic expansion and diversification.

Furthermore, the company allocated $375 million towards share repurchases during the quarter, underscoring its confidence in its long-term prospects and commitment to returning value to shareholders.

BlackRock announces cash dividend

BlackRock declared a 2% increase in its quarterly cash dividend, raising it to $5.10 per share.

Overall, BlackRock’s strong financial performance in the first quarter of 2024 reflects its resilience, adaptability, and commitment to delivering value to its clients and shareholders amidst a dynamic market environment.

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