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July 15, 2021updated 22 Jul 2021 9:32am

BlackRock reports 14% increase in Q2 profit; AuM jumps to record $9.49trn

BlackRock has reported a 14% increase in profit in Q2 2021 thanks to strong inflows indicating growing investor confidence about economic recovery.

The company’s assets under management (AuM) also jumped 30% on a year-on-year basis to a record $9.49trn.

Q2 2021 highlights

The asset manager added around $81bn of new investor money in Q2 2021 driven by continued momentum across the platform.

However, when compared, the figure dropped more than 19% from $100.2bn reported in the same quarter a year ago. The fall was attributed to the $58bn low-fee institutional index outflow related to a single client.

BlackRock’s net income jumped from $1.21bn in Q2 2020 to $1.38bn in Q2 2021.

The company’s revenue was $4.82bn in the three-month period ending 30 June 2021, up 32% from $3.65bn a year ago quarter. Technology services revenue grew to $316m from $278m.

The asset manager’s operating income increased 37% to $1.93bn, while adjusted net income was up 28% to $1.55bn.

BlackRock quotes

BlackRock chairman and CEO Laurence D. Fink said: “BlackRock’s comprehensive investment and technology platform continues to evolve ahead of our clients’ needs.

“Strong annualised organic base fee growth of 10% in the second quarter was driven by our top-performing active platform and industry-leading iShares ETF franchise. We also delivered 14% year-over-year growth in technology services revenue. Our longstanding approach to invest for the future positions our platform to better serve clients and generate more consistent organic growth.

“In sustainability, we are investing in products, data and analytics and technology to help investors capture the opportunity and manage the risks presented by sustainable factors. This is resonating with our clients and we generated $35 bn of sustainable net inflows in the quarter.”

Earlier this month, BlackRock made a minority investment in SpiderRock Advisors, which offers customised options strategies in the US wealth market.

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