(Reuters) -BlackRock Inc’s fourth-quarter profit beat analyst estimates on Friday, as the world’s largest money manager’s fee income rose with assets under management scaling a new peak of $10 trillion.
A strong finish to the year by global financial markets helped boost the performance of asset managers in general, with BlackRock (NYSE:BLK) also benefiting from its large scale and wide reach.
Assets under management stood at $10.01 trillion at the end of the quarter, up from $8.68 trillion a year earlier.
Net inflows for the quarter were at $212 billion, of which long-term net flows accounted for $169 billion, up from $116 billion a year earlier.
“Our business is more diversified than ever before – active strategies, including alternatives, contributed over 60% of 2021 organic base fee growth,” Chief Executive Officer Larry Fink said in a statement.
BlackRock’s revenue from investment advisory, securities lending and administration fees, its biggest segment, rose to $3.9 billion in the fourth quarter, helped by global dealmaking volumes rising to a record high in 2021, crossing $5 trillion for the first time.
Adjusted profit rose 2.5% to $1.61 billion, or $10.42 per share, in the quarter ended Dec. 31, from $1.57 billion, or $10.18 per share, a year earlier.
Analysts on average were expecting the company to report a profit of $10.16 per share, according to IBES data from Refinitiv.
Revenue rose nearly 14% to $5.1 billion.
BlackRock profit beats estimates as assets cross $10 trillion
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