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Blackrock reported better than expected third quarter earnings before the bell Wednesday. $BLK income from it's ETF and investment management income continues to soar with over $ 9,463,662,000 in total assets under management. They reported ahead of  Goldman Sachs $GS   Wells FargoWells Fargo $WFC and after JPMorgan $JPM.

Blackrock

Blackrock NYSE: BLK · Reported Before Open Wednesday

$10.89 Beat $9.57 EPS Expected and $5.05 Beat $4.80 billion Revenue Forecast

EarningsPreview

  • Q3 2021 earnings release: before the opening bell; conference call: 8:30 a.m.

BlackRock on Wednesday reported third-quarter profit of $1.68 billion or $10.89 per share. Earnings, adjusted for non-recurring costs, were $10.95 per share on revenue of $5.05 billion in the period.. Results were well ahead of the projected EPS of  $9.57 on projected revenue of $4.8 billion.

Stockmarket volatilty has been increasing and near record highs net flows into long-term investment products including ETFs and cash fuels their massive book. BLK saw $98 billion of long-term net inflows driven by continued momentum in ETFs and active strategies, with total net inflows of $75 billion reflecting outflows from low-fee cash management and advisory AUM. BlackRock's assets under management rose to a record $9 trillion in the first quarter, compared with $6.47 trillion a year earlier. Fixed income accounted for a bulk of the inflows, as expectations of policy tightening by the Federal Reserve triggered large moves in debt markets and pushed up U.S. Treasury yields. 

Revenue from investment advisory and administration fees make up most of BlackRock's earnings.  Its iShares platform is the leading domestic and global provider of exchange-traded funds generating solid organic growth.

 Big Banks Kick Off Third Quarter 2021 Earnings Season

The bank rally has been fueled by expectations for the economy reopening and infrastructure spending.  The new surge in home prices has also buoyed optimism for the mortgage business and banks profits thereto.

Blackrock NYSE: BLK

Market Reaction: Pre-Market: $846.01 +9.82 (+1.17%)

 Highlights

Blackrock Q3 21

Laurence D. Fink, Chairman and CEO:

“Clients continue to seek BlackRock’s insights and advice regarding their entire portfolios, reflecting the benefits of the investments we have made to better serve their evolving needs. BlackRock generated $98 billion of long-term net inflows in the third quarter, representing 9% annualized organic base fee growth and our 6th consecutive quarter in excess of our 5% target, once again demonstrating the strength of our diversified investment and technology platform.

Blackrock AUM Q3 21

“Organic growth was broad-based, spanning our active platform as well as in each of our ETF product categories. We delivered our 10th consecutive quarter of active equity inflows and client demand for ESG remains strong, with $31 billion of inflows across our sustainable active and index strategies. “Our long-term strategy remains centered on staying ahead of our clients’ needs and living our purpose of helping more and more people experience financial well-being. Whether through expanding investment choices, developing new retirement solutions, or enhancing our data analytics and technology capabilities, BlackRock remains committed to investing in high growth opportunities and industry-leading innovation." Fink Added

Blackrock Flows Q3 21

 

PNC Exit Stake in Blackrock

In the second quarter of 2020 PNC sold their passive equity stake in BlackRock. In November they announced thier plan to redeploy those proceeds to acquire BBVA USA. PNC in November said it would acquire the U.S. banking operations of Spain's BBVA for $11.6 billion cash, making it the biggest regional bank by assets under management in the U.S. The transaction is expected to close in mid-2021 and will increase PNC's total assets by an estimated $102 billion, creating the fifth largest bank by assets.

Source: BLK Earnings Release Earnings Release 

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