BlackRock Inc., the world's largest asset manager, reported a sharp rise in quarterly profits, beating Wall Street expectations as it attracted more assets from clients and the stock market rallied.
BlackRock reported third-quarter adjusted earnings per share of $2.75, trouncing the analysts' average estimate of $2.46, according to Thomson Reuters I/B/E/S. Its adjusted earnings exclude a tax benefit and other items.
Investors hoped to see strong signs of growth from BlackRock, which has been trying to stem outflows of client money following its $13.5 billion acquisition of Barclays Global Investors and its iShares exchange-traded-fund business last year.
The firm said that net new business during the quarter totaled $50.1 billion, and that merger integration "continues to progress well," chief executive Laurence Fink said in a statement.
The New York-based firm said net income rose to $551 million, or $2.83 per share, from $317 million or $2.27 per share, a year earlier.
Assets under management rose to $3.45 trillion from $3.15 trillion in the second quarter.
BlackRock said revenue increased to $2.09 billion from $2.03 billion in the second quarter. Analysts on average had expected $2.01 billion.
New business at the firm, included fixed income, equities, multi-asset class and cash management products, Fink said in a statement. Operating income also improved during the quarter, which the firm said was a result of merger integration and favorable markets.
The firm said its pipeline of net new business wins that are funded or will be funded totaled $46.1 billion, of which $40.7 billion are long-term products.
© 2022 Thomson/Reuters. All rights reserved.