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July 17, 2020

BlackRock Q2 net income soars on strong inflows

American asset manager BlackRock has reported attributable net income of $1.21bn for Q2 2020, a 21% surge from $1bn in the previous year.

The group’s assets under management at the end of June 2020 totalled $7.32trn, versus $6.84trn a year ago.

This was said to be due to $100bn in client inflows, driven by fixed income and cash management.

Fixed-income funds raked in $60.27bn in new money, while cash-management attracted $24.2bn.

The firm’s total revenue for the three-month period ended 30 June 2020 was $3.65bn, up 4% from $3.52 in the same quarter of 2019.

Technology services revenue increased 17% year-on-year to $278m.

BlackRock attributed the growth to the continued momentum of the firm’s risk management platform Aladdin.

Operating income rose 10% to $1.4bn from $1.28bn over the period.

Total expense remained almost stable at $2.24bn.

Employee compensation and benefits expense increased to $1.15bn from $1.08bn. General and administration expense dropped to 388m from $470m.

BlackRock chairman and CEO Laurence Fink said: “BlackRock’s globally integrated asset management and technology platform generated $100 billion of total net inflows in the second quarter, representing 10% annualised organic base fee growth.

“iShares fixed income ETFs and BlackRock’s active equity strategies both saw record inflows, and leadership in cash solutions drove strength in flows as clients sought liquidity. Momentum also continued in sustainable strategies and illiquid alternatives, where we are investing for future growth.”

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