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October 14, 2022

BlackRock registers 16% dip in Q3 profits; AuM declines to $7.96 trillion

BlackRock has reported a net income of $1.41bn for the third quarter of 2022, a decline of almost 16% compared with $1.68bn a year ago.

For the quarter ended 30 September 2022, the company’s assets under management (AUM) dropped 16% to $7.96 trillion due to uncertainties in global equity and bond markets.

The firm’s revenue dropped 15% to $4.31bn in the third quarter.

The asset manager’s overall quarterly net inflows remained strong with $65bn of long-term net inflows. The firm’s year-to-date inflows stood at $248bn.

The inflow is fuelled by momentum from exchange-traded funds (ETFs) and ‘significant outsourcing mandates,’ the firm said.

BlackRock’s net flows totalled $17bn in the Q3, which was due to outflows from various BlackRock offerings, such as cash management and advisory AUM.

Adjusted operating income fell 22% to $1.5bn in the third quarter of this year, which covers the effect of fund launch expenses of $96m in Q3 2021.

BlackRock chairman and CEO Laurence Fink said: “BlackRock generated industry-leading long-term net inflows of $248bn in the first nine months of 2022, including $65bn in the third quarter. We once again saw strong growth in bond ETFs, with $37bn of net inflows.

“Active strategies reflected momentum from significant outsourcing mandates and continued demand for alternatives, where we raised $6bn across commitments and net inflows.

“We had record Aladdin client mandates in the first nine months of 2022, with over half coming from multi-product solutions.”

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