Leading U.S. investment firm BlackRock (BLK) has announced that its third-quarter profit rose 14% from a year earlier.
The world’s largest money manager reported Q3 earnings per share (EPS) of $10.91 U.S., up 14% from $9.55 U.S. a year earlier, and better than the $8.34 U.S. that was expected among Wall Street analysts.
The New York-based company also said that its Q3 operating income increased 7% from a year earlier. However, despite the solid results, BlackRock’s stock is down 1% on news of growing outflows of investor capital.
BlackRock recorded $3 billion U.S. of net investment dollar inflows during the July through September period. However, net outflows in Q3 totaled $49 billion U.S.
The company blamed the high levels of outflows on jittery retail investors who are nervous about the stock market, and on a $19 billion U.S. outflow from a single international client.
The Federal Reserve has aggressively raised interest rates over the past 18 months, causing bond yields to rise and stock prices to fall.
“We remain intensely focused on staying in front of our clients, positioning for a resurgence in allocation activity as rates stabilize, and laying the foundation for future growth,” said BlackRock CEO Larry Fink in a written statement accompanying the earnings report.
The stock of BlackRock has declined 11% year-to-date and currently trades at $636.17 U.S. per share.
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