BlackRock profit slips but inflows rise amid Q4 market rebound

NEW YORK: BlackRock Inc reported an 18% drop in fourth-quarter profit on Friday, hit by a global market rout that squeezed fee income, but registered $146 billion of long-term net inflows in the quarter as stocks and bonds rebounded.

Financial markets were thrown into turmoil last year by a swift rise in interest rates and recession fears, hitting businesses such as BlackRock, which makes most of its money from fees on investment advisory and administration services.

But stocks and bonds rallied in the fourth quarter on expectations of a slowdown in global central banks’ monetary tightening actions as inflation started to ease.

“We ended the year with strong momentum, generating $114 billion of fourth-quarter net inflows, representing 3% annualized organic base fee growth, reflecting continued strength in ETFs and significant outsourcing mandates,” Larry Fink, BlackRock chairman and chief executive, said in a statement.

The world’s largest asset manager’s adjusted earnings were $1.36 billion, or $8.93 per share, in the three months to Dec. 31, down from $1.65 billion, or $10.68 per share, a year earlier.

Analysts on average had expected a profit of $8.11 per share, based on IBES data from Refinitiv.