Blackrock, the world’s largest money manager reported a 36 % year-on-year jump in net income to $1.57bn in its fiscal first quarter, on an 11 per increase in revenue to $4.7bn.
Those figures, as well as a net income of $1.47bn, all beat the expectations of analysts. However, net inflows of $57bn dragged down by $19bn of outflows from cash management products. In a statement, Chief Executive Larry Fink pointed to a strong pipeline of opportunities.
‘We see significant growth potential in infrastructure, technology, retirement and whole portfolio solutions’, he said.
BlackRock was one of a dozen providers to start a spot bitcoin exchange-traded fund in the first quarter but its product has been the runaway success story: it reached $10bn in assets in record time and now has $18.7bn.
Most of the $1.4tn year-on-year increase in assets under management was due to rising equity markets.
Since 2019 in the US, the S&P 500 had its best first quarter. BlackRock and other asset managers have been predicting a big rotation into fixed income, but the US Federal Reserve’s decision to keep interest rates at a 23-year high has thus far depressed demand.
BlackRock’s operating margin improved to 35.8 %, slightly better than analysts expected. The money manager announced small job cuts in January as part of a broader effort t
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