US asset management major BlackRock has reported a net income attributable to the company of $1.63bn for the third quarter of 2024.
This represents a 2% increase from the $1.6bn reported in the same period in 2023.
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The firm’s financial performance in Q3 2024 has been marked by growth across various metrics, including revenue, operating income, and assets under management (AUM).
The company’s revenue saw a 15% year-on-year increase, rising to $5.19bn from $4.52bn.
BlackRock attributed the revenue growth to the positive impact of market movements on average AUM, organic base fee growth, and higher performance fees.
The company’s AUM experienced a 26% surge, reaching $11.47trn, bolstered by net inflows and favourable market conditions.
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By GlobalDataBlackRock also reported a record $221bn of total net inflows for the quarter, indicating an 8% annualised organic asset growth.
These inflows were consistently positive across various client types, product types, active and index strategies, and regions.
Operating income for the quarter stood at $2bn, marking a 23% increase from the $1.63bn reported in the prior year’s corresponding period.
The operating margin improved to 38.6%, up from 36.2%, reflecting the company’s enhanced profitability.
Diluted earnings per share also saw a 2% increase, reaching $10.90 compared to the $10.66 in the third quarter of 2023.
Earlier in the month, BlackRock completed the acquisition of GIP, which consolidated more than $100bn of private markets AUM and approximately $750m of run rate management fees.
This move boosted private markets AUM by approximately 40% and expanded run rate revenues.
Blackrock chairman and CEO Laurence Fink said: “We are effectively leveraging our technology, scale, and global footprint to deliver profitable growth. Quarterly revenue and operating income both set new records, up 15% and 26% year-over-year, respectively. Our 45.8% operating margin is up 350 basis points.
“Through coordinated investments and initiatives, we are evolving our private markets capabilities to best serve our clients.
“We are already seeing the power of BlackRock and GIP together as we drive access to the enormous investment potential of infrastructure, especially to support AI innovation. We believe the model portfolio solution we are building will democratize retail access to private markets. And our planned acquisition of Preqin will enhance data and risk analytics needed to support growing private markets allocations.”
