BlackRock (BLK), the world's largest asset manager, has posted a better-than-expected third
quarter profit as strong demand for its exchange-traded funds (ETF) offset a decline in stocks
and bonds.
A potential global recession, rising interest rates, and the war in Ukraine have hurt bond and
stock prices throughout the year, damaging investment firms such as BlackRock in the process.
The New York-based company's assets under management fell 16% year-over-year to $7.96
trillion U.S. in the third quarter as a stronger dollar pushed down the value of the firm’s
investments in Europe and Asia.
As a result, BlackRock posted a 16% drop in its Q3 profit to $9.55 U.S. per share.
However, the profit was much better than the $7.07 U.S. per share that Wall Street analysts had
expected, according to Refinitiv data.
BlackRock said it managed to beat expectations due to strong demand for its iShares ETFs.
Net inflows were positive at $65 billion U.S. as ETF sales offset the hit BlackRock took from
retail clients withdrawing $5 billion U.S. from their accounts during the July through September
period.
Revenue at BlackRock fell 15% to $4.31 billion U.S. during the third quarter.
The company’s net income fell to $1.4 billion U.S., or $9.25 U.S. per share, for the three months
ended September 30, from $1.68 billion U.S., or $10.89 U.S. per share, a year earlier.
BlackRock’s stock is down 42% this year at $531.10 U.S. per share.
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