American asset manager BlackRock has reported attributable net income of $1.3bn for the fourth quarter (Q4) of 2019.
This is a 40% surge from the previous year income of $927m.
The firm’s total revenue for the three-month period ended 31 December 2019 was $3.98bn, a 16% increase from $3.43bn in the same period of 2018.
Technology services revenue grew to $274m from $203m. The firm attributed the growth to increased revenue from Aladdin and the purchase of French software provider eFront.
Operating income of $1.54bn in Q4 2019 was 23% higher than a year ago.
Total operating expense increased 11% year-on-year to $2.44bn. Employee compensation and benefits expense rose $192m during the period due to higher headcount and incentive compensation.
General and administration expense increased $66m on a year-on-year basis. This was said to be driven by growth in technology and occupancy expenses.
The group’s assets under management at the end of December 2019 totalled $7.43 trillion, versus $5.97 trillion last year.
BlackRock chairman and CEO Laurence Fink said: “We generated a record $429 billion of total net inflows in 2019, representing 7% organic asset and 5% organic base fee growth, and ended the year with strong momentum, capturing $129 billion of flows in the fourth quarter.
“Full year flows were positive across product type and investment style, including records in cash, factors and illiquid alternatives. Continued investment in Aladdin, including the acquisition of eFront, drove record growth in technology services revenue to almost $1 billion for the year.”