BlackRock reports revenue increase for Q2
20 July 2020 New York
Image: Rawpixel/Shutterstock
BlackRock has reported a year-on-year revenue increase of 4 percent and a 17 percent growth in technology services revenue for Q2, according to financial results for the three and six months ended 30 June.
The increase is said to be attributable to higher performance fees and the Aladdin investment management platform, respectively.
The Aladdin platform recently gained momentum following a
partnership with Citi to administer middle-office securities services, therefore contributing to BlackRock’s technology services revenue for the quarter, which marked a year-on-year increase by $41 million.
Investment advisory, administration fees and securities lending revenue also saw a year-on-year increase of $63 million.
Although motivated by organic growth, BlackRock revealed this was also partially offset by the negative effect of equity beta and foreign exchange movements on average assets under management, marking an $89 million decrease compared to Q1 this year.
However, securities lending revenue alone increased $52 million from its Q1 figure, and marked a year-on-year increase of $60 million owing to higher asset spreads and average balances of securities on loan.
BlackRock cited that higher revenues on alternative and long-only equity products were responsible for a performance fee increase of $71 million compared to Q1.
Laurence Fink, chairman and CEO of BlackRock, commented: “Clients are relying on BlackRock for our unique insights, guidance and comprehensive investment solutions. This is leading to deeper partnerships, and we are seeing clients entrust BlackRock with a greater share of their assets.”
“BlackRock’s strong fiduciary culture is resonating in the depth of our relationships and the strength of our results. It is one of the key drivers of growth in our Aladdin technology business, and a critical reason why our financial markets advisory team is working with governments around the world as they support their economies.”
Fink added: “Our steadfast focus is on serving all of our stakeholders through this crisis. I am honoured by the trust that clients, governments and communities have placed in us, which we approach with a deep sense of responsibility.”
The increase is said to be attributable to higher performance fees and the Aladdin investment management platform, respectively.
The Aladdin platform recently gained momentum following a
partnership with Citi to administer middle-office securities services, therefore contributing to BlackRock’s technology services revenue for the quarter, which marked a year-on-year increase by $41 million.
Investment advisory, administration fees and securities lending revenue also saw a year-on-year increase of $63 million.
Although motivated by organic growth, BlackRock revealed this was also partially offset by the negative effect of equity beta and foreign exchange movements on average assets under management, marking an $89 million decrease compared to Q1 this year.
However, securities lending revenue alone increased $52 million from its Q1 figure, and marked a year-on-year increase of $60 million owing to higher asset spreads and average balances of securities on loan.
BlackRock cited that higher revenues on alternative and long-only equity products were responsible for a performance fee increase of $71 million compared to Q1.
Laurence Fink, chairman and CEO of BlackRock, commented: “Clients are relying on BlackRock for our unique insights, guidance and comprehensive investment solutions. This is leading to deeper partnerships, and we are seeing clients entrust BlackRock with a greater share of their assets.”
“BlackRock’s strong fiduciary culture is resonating in the depth of our relationships and the strength of our results. It is one of the key drivers of growth in our Aladdin technology business, and a critical reason why our financial markets advisory team is working with governments around the world as they support their economies.”
Fink added: “Our steadfast focus is on serving all of our stakeholders through this crisis. I am honoured by the trust that clients, governments and communities have placed in us, which we approach with a deep sense of responsibility.”
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