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BlackRock sails to higher profit despite market churn


(Reuters) - Inc, the world's largest asset manager, reported first-quarter profit that exceeded Wall Street estimates on Thursday, benefiting despite higher in global markets.

said its family of (ETFs) added $34.65 billion in new in the quarter, down from $64.48 billion a year earlier.

The new assets helped boost its revenue from managing and lending out the stocks in its funds faster than its expenses on sales and compensation, bulking profits.

The market swung wildly during the quarter, with enthusiasm over the effect of U.S. corporate tax cuts enacted last year blunted by concerns about inflation, a global trade war and policy.

said in a statement the company's institutional clients reacted dramatically, for instance by stocking away cash in the bond market, selling investments to fund investments, share buybacks or acquisitions.

"In a challenging environment, continued to perform well," Fink said.

Total revenue rose 15.9 percent to $3.6 billion from the same quarter in 2017, while expenses rose just 9.8 percent to $2.2 billion. Assets under management were $6.32 trillion on March 31.

shares climbed 2.4 percent in premarket trading.

Overall, the New York-based company's net income rose to $1.09 billion, or $6.68 per share, in the quarter ended March 31 from $859 million, or $5.21 per share, a year earlier.

Excluding items, earned $6.70 per share, which the company said was partly driven by a lower tax rate. Analysts on an average expected to report $6.39 per share, according to Thomson I/B/E/S.

(Reporting by Trevor Hunnicutt; Additional reporting by Diptendu Lahiri in Bengaluru; Editing by and Bernadette Baum)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, April 12 2018. 20:01 IST