A BlackRock building in New York
(Archyde.com) – BlackRock on Friday reported quarterly profit that beat expectations on Friday as strong capital flows into its various funds helped cushion the impact on its fee income as the global banking crisis impacted markets financial.
BlackRock, which derives most of its revenue from fees charged for investment advisory and administrative services, reported adjusted earnings of $7.93 (about 7.18 euros) per share.
Analysts on average had expected earnings of $7.76 per share, according to IBES data from Refinitiv.
Net inflows for the first quarter were $110 billion, down from $86 billion a year earlier.
“I believe the current crisis of confidence in the regional banking industry will further accelerate capital markets growth, and BlackRock will be a central player in that,” said chief executive Larry Fink.
The markets took a beating at the end of the first quarter. The recent bank failures in the United States have raised fears about liquidity and led to the devaluation of several stocks in an environment of continuing rising interest rates.
BlackRock, the world’s largest asset manager, ended the first quarter with $9.1 trillion in assets under management, down from $9.57 trillion a year earlier and up from $8.59 trillion. dollars in the fourth quarter.
Last month, Larry Fink warned in his annual letter to managers and investors that the financial sector could experience “liquidity mismatches” as a result of the banking turmoil.
Quarterly revenue increased from $4.7 billion to $4.2 billion.
(Reporting Jaiveer Singh Shekhawat in Bangalore and Davide Barbuscia in New York, French version Dina Kartit, editing by Kate Entringer)