BlackRock’s assets exceed $ 10 trillion, revenue misses slightly By Reuters

© Reuters. PHOTOGRAPHS: The BlackRock sign appears outside its offices in New York City, US, October 17, 2016. REUTERS / Brendan McDermid

Author Sohini Podder and Lewis Krauskopf

(Reuters) -BlackRock Inc.’s fourth-largest search for revenue estimates Friday, when the world’s largest accounting firm’s inflation rate rose and its asset managed by more than $ 10 trillion, but shares declined as lost revenue a bit on Wall Street.

The strong end of the year and global financial markets helped to strengthen the performance of regular asset managers, while BlackRock (NYSE 🙂 also benefited from its size and expansion.

Managed assets stood at $ 10.01 trillion at the end of the quarter, up from $ 8.68 trillion a year ago.

“It’s a very interesting thing and it just shows their dominance in the fastest growing areas,” said Kyle Sanders, Edward Jones expert. “They will continue to accumulate wealth in an exciting area.”

Revenue from the sector was $ 212 billion, of which long-term travel was $ 169 billion, up from $ 116 billion last year.

“Our business is very different than ever – working methods, among other things, have contributed 60% of the 2021 growth rate,” Chief Executive Officer Larry Fink said in a statement.

BlackRock revenues from financial services, mortgage lending and lending, for the most part, rose to $ 3.9 billion in the fourth quarter, supported by a global increase to record in 2021, exceeding $ 5 trillion for the first time.

The revised 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, last year.

Analysts almost expected the company to report a profit of $ 10.16 per share, according to IBES data from Refinitiv.

Revenue rose about 14% to $ 5.11 billion, slightly lower than the combined average of $ 5.17 billion.

BlackRock shares were down 1.7% to $ 852.66 on morning trading. Markets started casually for a year as investors squandered what the Federal Reserve is expected to start raising interest rates to help boost inflation.

“2022 will be a turning point for all economic institutions,” said Cathy Seifert, a researcher at CFRA.

BlackRock said it was looking to sell “history” in its business by 2022, including an increase of the expected population of up to 10%.

“Hopefully, they’ll start investing again,” Sanders told Edward Jones. “They have wasted a lot of money, and this makes it difficult for them to make significant gains and growth for EPS in 2022.”

BlackRock shares rose about 27% last year compared to the 32% gain of the S&P 1500 asset manager and custody banks index.

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