New York, NY, United States (4E) – BlackRock Inc. said profit in the third quarter advanced 14 percent as the money-manager’s revenue and assets under management expanded.
Net income climbed to $730mn, or $4.21 per share, from $642mn, or $3.65 per share, from the previous year, according to the New York-based company’s statement released Wednesday. At the end of the quarter, total assets under management totaled $4.096tn, an increase of 12 percent from the previous year, and 6.2 percent from the prior quarter.
Excluding some items, per-share adjusted earnings were at $3.88 per share, which is in line with the 20 analysts’ average estimate in a survey by Bloomberg News. Revenue climbed 6.6 percent to $2.5bn, spurred by a rise in the advisory fees the company makes in managing the money of their clients. Expenses jumped 4.2 percent to $1.5bn.
In December 2009, the Blackstone bought Barclays Global Investors in a move to expand into passive investments. The company – which manages portfolios using mathematical models — is the biggest provider of exchange traded funds (ETFs) through its iShares unit, as well as offers actively managed equity and bond funds.
Total long-term net inflows stood at $25.28bn. The company’s iShares ETF unit reported third quarter net inflows of $20.2bn, which puts the total assets under its management to $856.9bn.
ETFs are considered the fastest rising segment of the asset-management business, which brought benefits to companies like BlackRock, State Street Corp. and Vanguard Group Inc.