NEW YORK--(BUSINESS WIRE)--
BlackRock, Inc. (NYSE: BLK) today reported financial results for the three months and year ended December 31, 2024.
$11.6 trillion in AUM following a record $641 billion of full year net inflows, including $281 billion in the fourth quarter
14% increase in full year revenue
driven by the positive impact of markets on average AUM, organic base fee growth, and fees on AUM acquired in the GIP Transaction, as well as higher performance fees and technology service revenue
21% increase in full year operating income (23% as adjusted)
15% increase in full year diluted EPS
also reflects lower nonoperating income and a higher effective tax rate in the current year
$4.7 billion returned to shareholders in 2024,
including $1.6 billion of share repurchases
Previously announced agreement to acquire HPS Investment Partners
to create an integrated private credit franchise with approximately $220 billion in pro-forma client assets
Laurence D. Fink, Chairman and CEO:
“Clients entrusted BlackRock with a record $641 billion of net inflows in 2024, including $281 billion in the fourth quarter for two consecutive record flows quarters. 2024 was also a milestone year for strategic acquisitions grounded in client service, technology and scale. Our closing of GIP and planned acquisitions of HPS and Preqin are expected to significantly scale and enhance our private markets investment and data capabilities.
“For many companies, periods of M&A contribute to a pause in client engagement. At BlackRock, clients are instead embracing and rewarding our strategy. Client activity accelerated into the fourth quarter, resulting in 7% organic base fee growth and 12% technology services ACV growth. Our operating model delivered exceptional performance in a year of meaningful change. We crossed $20 billion of annual revenue, up 14% from 2023. As adjusted operating income grew by 23%, and our industry-leading margin of 44.5% was up 280 basis points.
“Our record organic growth and financial results do not yet reflect the full integration or pending acquisitions of the high-growth businesses of GIP, HPS and Preqin. And we’ve steadily made organic investments ahead of structural trends that we expect to drive outsized growth in the years ahead.
“BlackRock’s world-class talent is central to our significant growth and sustained performance. We have a longstanding, deliberate strategy of systematically elevating our strongest leaders around the world. We’re excited to again have a number of them taking on expanded roles this year. BlackRock’s leadership team alongside top talent from GIP, HPS and Preqin position us to serve our clients with excellence and seize the opportunities ahead of us.
“In the 25 years since our IPO, BlackRock has delivered a 21% compounded annual total return for our shareholders, compared to 8% in the S&P 500. BlackRock enters 2025 with more growth and upside potential than ever. This is just the beginning.”
FINANCIAL RESULTS | | |
NET FLOW HIGHLIGHTS(1)
| |
(in millions, | Q4 | | | Q4 | | | Full Year | | | | | | Q4 | | | Full Year | |
except per share data) | 2024 | | | 2023 | | | 2024 | | | 2023 | | | (in billions) | 2024 | | | 2024 | |
AUM | $ | 11,551,251 | | | $ | 10,008,995 | | | $ | 11,551,251 | | | $ | 10,008,995 | | | Long-term net flows: | $ | 201 | | | $ | 489 | |
% change | | 15 | % | | | | | | 15 | % | | | | | | | | | | | | |
Average AUM | $ | 11,555,434 | | | $ | 9,384,929 | | | $ | 10,804,007 | | | $ | 9,220,700 | | | By region: | | | | | |
% change | | 23 | % | | | | | | 17 | % | | | | | | Americas | $ | 116 | | | $ | 317 | |
Total net flows | $ | 281,416 | | | $ | 95,647 | | | $ | 641,351 | | | $ | 288,695 | | | | EMEA | | 74 | | | | 149 | |
| | | | | | | | | | | | | | APAC | | 11 | | | | 23 | |
GAAP basis: | | | | | | | | | | | | | | | | | | | | |
Revenue | $ | 5,677 | | | $ | 4,631 | | | $ | 20,407 | | | $ | 17,859 | | | By client type: | | | | | |
% change | | 23 | % | | | | | | 14 | % | | | | | | | | | | | | |
Operating income | $ | 2,075 | | | $ | 1,585 | | | $ | 7,574 | | | $ | 6,275 | | | |
Retail:
| $ | 5 | | | $ | 24 | |
% change | | 31 | % | | | | | | 21 | % | | | | | | | US | | 3 | | | | 19 | |
Operating margin | | 36.6 | % | | | 34.2 | % | | | 37.1 | % | | | 35.1 | % | | | | International | | 2 | | | | 5 | |
Net income(1) | $ | 1,670 | | | $ | 1,375 | | | $ | 6,369 | | | $ | 5,502 | | | | | | | | | | |
% change | | 21 | % | | | | | | 16 | % | | | | | |
ETFs:
| $ | 143 | | | $ | 390 | |
Diluted EPS | $ | 10.63 | | | $ | 9.15 | | | $ | 42.01 | | | $ | 36.51 | | | | | Core equity | | 75 | | | | 175 | |
% change | | 16 | % | | | | | | 15 | % | | | | | | | Strategic | | 18 | | | | 113 | |
Weighted-average | | | | | | | | | | | | | | | Cryptocurrency | | 18 | | | | 41 | |
diluted shares | | 157.0 | | | | 150.2 | | | | 151.6 | | | | 150.7 | | | | | Other precision | | 32 | | | | 61 | |
% change | | 5 | % | | | | | | 1 | % | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Institutional:
| $ | 53 | | | $ | 74 | |
As Adjusted(2)
:
| | | | | | | | | | | | | | | Active | | 25 | | | | 64 | |
Operating income | $ | 2,326 | | | $ | 1,716 | | | $ | 8,110 | | | $ | 6,593 | | | | | Index | | 28 | | | | 9 | |
% change | | 36 | % | | | | | | 23 | % | | | | | | | | | | | | |
Operating margin | | 45.5 | % | | | 41.6 | % | | | 44.5 | % | | | 41.7 | % | | | | | | | | | |
Net income(1) | $ | 1,874 | | | $ | 1,451 | | | $ | 6,612 | | | $ | 5,692 | | | Cash management net flows | $ | 81 | | | $ | 153 | |
% change | | 29 | % | | | | | | 16 | % | | | | | | | | | | | | |
Diluted EPS | $ | 11.93 | | | $ | 9.66 | | | $ | 43.61 | | | $ | 37.77 | | | | | | | | | | |
% change | | 23 | % | | | | | | 15 | % | | | | | Total net flows | $ | 281 | | | $ | 641 | |
_________________________ | | | | | | | | | _________________________ | |
(1)
Net income represents net income attributable to BlackRock, Inc.
(2)
See pages 10 through 12 for the reconciliation to GAAP and notes (1) through (3) to the condensed consolidated statements of income and supplemental information for more information on as adjusted items. | | | (1)
Totals may not add due to rounding. | |
| | | | |
BUSINESS RESULTS |
| | | | | | | | | Q4 2024 | |
| | | | | Q4 2024 | | | |
Base fees(1)
| |
| | | | |
Base fees(1)
| | December 31, 2024 | | and securities | |
| Q4 2024 | | December 31, 2024 | | and securities | | AUM | | lending revenue | |
(in millions), (unaudited) | Net flows | | AUM | | lending revenue | | % of Total | | % of Total | |
RESULTS BY CLIENT TYPE | | | | | | | | | | |
Retail | $ | 4,650 | | $ | 1,015,827 | | $ | 1,105 | | | 9 | % | | 25 | % |
ETFs | | 142,641 | | | 4,230,375 | | | 1,815 | | | 37 | % | | 41 | % |
Institutional: | | | | | | | | | | |
Active | | 25,126 | | | 2,136,749 | | | 962 | | | 18 | % | | 22 | % |
Index | | 28,251 | | | 3,247,637 | | | 242 | | | 28 | % | | 5 | % |
Total institutional | | 53,377 | | | 5,384,386 | | | 1,204 | | | 46 | % | | 27 | % |
Long-term | | 200,668 | | | 10,630,588 | | | 4,124 | | | 92 | % | | 93 | % |
Cash management | | 80,748 | | | 920,663 | | | 293 | | | 8 | % | | 7 | % |
Total | $ | 281,416 | | $ | 11,551,251 | | $ | 4,417 | | | 100 | % | | 100 | % |
| | | | | | | | | | |
RESULTS BY INVESTMENT STYLE | | | | | | | | | | |
Active | $ | 22,830 | | $ | 2,870,656 | | $ | 1,991 | | | 25 | % | | 45 | % |
Index and ETFs | | 177,838 | | | 7,759,932 | | | 2,133 | | | 67 | % | | 48 | % |
Long-term | | 200,668 | | | 10,630,588 | | | 4,124 | | | 92 | % | | 93 | % |
Cash management | | 80,748 | | | 920,663 | | | 293 | | | 8 | % | | 7 | % |
Total | $ | 281,416 | | $ | 11,551,251 | | $ | 4,417 | | | 100 | % | | 100 | % |
| | | | | | | | | | |
RESULTS BY PRODUCT TYPE | | | | | | | | | | |
Equity | $ | 126,566 | | $ | 6,310,191 | | $ | 2,142 | | | 55 | % | | 48 | % |
Fixed income | | 23,784 | | | 2,905,669 | | | 950 | | | 25 | % | | 22 | % |
Multi-asset | | 24,307 | | | 992,921 | | | 326 | | | 8 | % | | 7 | % |
Alternatives: | | | | | | | | | | |
Private markets | | 4,730 | | | 211,974 | | | 480 | | | 2 | % | | 11 | % |
Liquid alternatives | | 1,165 | | | 76,390 | | | 146 | | | 1 | % | | 3 | % |
Currency and commodities(2) | | 20,116 | | | 133,443 | | | 80 | | | 1 | % | | 2 | % |
Total alternatives | | 26,011 | | | 421,807 | | | 706 | | | 4 | % | | 16 | % |
Long-term | | 200,668 | | | 10,630,588 | | | 4,124 | | | 92 | % | | 93 | % |
Cash management | | 80,748 | | | 920,663 | | | 293 | | | 8 | % | | 7 | % |
Total | $ | 281,416 | | $ | 11,551,251 | | $ | 4,417 | | | 100 | % | | 100 | % |
_________________________ |
(1) | | Base fees include investment advisory and administration fees. |
(2) | | Amounts include cryptocurrency and commodity ETFs and exchange-traded products ("ETPs"). |
INVESTMENT PERFORMANCE AT DECEMBER 31, 2024(1)
|
| One-year period | Three-year period | Five-year period |
Fixed income: | | | |
Actively managed AUM above benchmark or peer median | | | |
Taxable | 69% | 79% | 82% |
Tax-exempt | 69% | 42% | 45% |
Index AUM within or above applicable tolerance | 97% | 99% | 98% |
Equity: | | | |
Actively managed AUM above benchmark or peer median | | | |
Fundamental | 47% | 44% | 64% |
Systematic | 93% | 89% | 93% |
Index AUM within or above applicable tolerance | 94% | 99% | 100% |
_________________________ |
(1) | | Past performance is not indicative of future results. The performance information shown is based on preliminary available data. Please refer to page 14 for performance disclosure detail. |
TELECONFERENCE, WEBCAST AND PRESENTATION INFORMATION
Chairman and Chief Executive Officer, Laurence D. Fink, President, Robert S. Kapito, and Chief Financial Officer, Martin S. Small, will host a teleconference call for investors and analysts on Wednesday, January 15, 2025 at 7:30 a.m. (Eastern Time). Members of the public who are interested in participating in the teleconference should dial, from the United States, (786) 460-7166, or from outside the United States, (866) 409-1555, shortly before 7:30 a.m. and reference the BlackRock Conference Call (ID Number 6231688). A live, listen-only webcast will also be available via the investor relations section of
www.blackrock.com.
The webcast will be available for replay by 10:30 a.m. (Eastern Time) on Wednesday, January 15, 2025. To access the replay of the webcast, please visit the investor relations section of
www.blackrock.com.
ABOUT BLACKROCK
BlackRock’s purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable. For additional information on BlackRock, please visit
www.blackrock.com/corporate.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION |
(in millions, except per share data), (unaudited) |
| | | | | | | | Three Months | | | | | |
| Three Months Ended | | | | | | | Ended | | | | | |
| December 31, | | | | | | | September 30, | | | | | |
| 2024 | | | 2023 | | | Change | | | | 2024 | | | Change | | |
Revenue | | | | | | | | | | | | | | | | |
Investment advisory, administration fees and securities lending revenue: | | | | | | | | | | | | | | | | |
Investment advisory and administration fees | $ | 4,256 | | | $ | 3,448 | | | $ | 808 | | | | $ | 3,881 | | | $ | 375 | | |
Securities lending revenue | | 161 | | | | 157 | | | | 4 | | | | | 149 | | | | 12 | | |
Total investment advisory, administration fees and securities lending revenue | | 4,417 | | | | 3,605 | | | | 812 | | | | | 4,030 | | | | 387 | | |
Investment advisory performance fees | | 451 | | | | 311 | | | | 140 | | | | | 388 | | | | 63 | | |
Technology services revenue | | 428 | | | | 379 | | | | 49 | | | | | 403 | | | | 25 | | |
Distribution fees | | 322 | | | | 303 | | | | 19 | | | | | 323 | | | | (1 | ) | |
Advisory and other revenue | | 59 | | | | 33 | | | | 26 | | | | | 53 | | | | 6 | | |
Total revenue | | 5,677 | | | | 4,631 | | | | 1,046 | | | | | 5,197 | | | | 480 | | |
| | | | | | | | | | | | | | | | |
Expense | | | | | | | | | | | | | | | | |
Employee compensation and benefits | | 1,885 | | | | 1,503 | | | | 382 | | | | | 1,578 | | | | 307 | | |
Sales, asset and account expense: | | | | | | | | | | | | | | | | |
Distribution and servicing costs | | 565 | | | | 502 | | | | 63 | | | | | 549 | | | | 16 | | |
Direct fund expense | | 389 | | | | 318 | | | | 71 | | | | | 379 | | | | 10 | | |
Sub-advisory and other | | 42 | | | | 35 | | | | 7 | | | | | 34 | | | | 8 | | |
Total sales, asset and account expense | | 996 | | | | 855 | | | | 141 | | | | | 962 | | | | 34 | | |
General and administration expense | | 596 | | | | 589 | | | | 7 | | | | | 562 | | | | 34 | | |
Restructuring charge | | - | | | | 61 | | | | (61 | ) | | | | - | | | | - | | |
Amortization and impairment of intangible assets | | 125 | | | | 38 | | | | 87 | | | | | 89 | | | | 36 | | |
Total expense | | 3,602 | | | | 3,046 | | | | 556 | | | | | 3,191 | | | | 411 | | |
| | | | | | | | | | | | | | | | |
Operating income | | 2,075 | | | | 1,585 | | | | 490 | | | | | 2,006 | | | | 69 | | |
| | | | | | | | | | | | | | | | |
Nonoperating income (expense) | | | | | | | | | | | | | | | | |
Net gain (loss) on investments | | (18 | ) | | | 265 | | | | (283 | ) | | | | 177 | | | | (195 | ) | |
Interest and dividend income | | 212 | | | | 159 | | | | 53 | | | | | 236 | | | | (24 | ) | |
Interest expense | | (166 | ) | | | (82 | ) | | | (84 | ) | | | | (154 | ) | | | (12 | ) | |
Total nonoperating income (expense) | | 28 | | | | 342 | | | | (314 | ) | | | | 259 | | | | (231 | ) | |
| | | | | | | | | | | | | | | | |
Income before income taxes | | 2,103 | | | | 1,927 | | | | 176 | | | | | 2,265 | | | | (162 | ) | |
Income tax expense | | 442 | | | | 438 | | | | 4 | | | | | 574 | | | | (132 | ) | |
Net income | | 1,661 | | | | 1,489 | | | | 172 | | | | | 1,691 | | | | (30 | ) | |
Less: | | | | | | | | | | | | | | | | |
Net income (loss) attributable to noncontrolling interests | | (9 | ) | | | 114 | | | | (123 | ) | | | | 60 | | | | (69 | ) | |
Net income attributable to BlackRock, Inc. | $ | 1,670 | | | $ | 1,375 | | | $ | 295 | | | | $ | 1,631 | | | $ | 39 | | |
| | | | | | | | | | | | | | | | |
Weighted-average common shares outstanding | | | | | | | | | | | | | | | | |
Basic | | 155.0 | | | | 148.7 | | | | 6.3 | | | | | 148.0 | | | | 6.9 | | |
Diluted | | 157.0 | | | | 150.2 | | | | 6.8 | | | | | 149.6 | | | | 7.4 | | |
Earnings per share attributable to BlackRock, Inc. common stockholders | | | | | | | | | | | | | | | | |
Basic | $ | 10.78 | | | $ | 9.25 | | | $ | 1.53 | | | | $ | 11.02 | | | $ | (0.24 | ) | |
Diluted | $ | 10.63 | | | $ | 9.15 | | | $ | 1.48 | | | | $ | 10.90 | | | $ | (0.27 | ) | |
Cash dividends declared and paid per share | $ | 5.10 | | | $ | 5.00 | | | $ | 0.10 | | | | $ | 5.10 | | | $ | - | | |
| | | | | | | | | | | | | | | | |
Supplemental information: | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
AUM (end of period) | $ | 11,551,251 | | | $ | 10,008,995 | | | $ | 1,542,256 | | | | $ | 11,475,362 | | | $ | 75,889 | | |
Shares outstanding (end of period) | | 154.9 | | | | 148.5 | | | | 6.4 | | | | | 148.0 | | | | 7.0 | | |
GAAP: | | | | | | | | | | | | | | | | |
Operating margin | | 36.6 | % | | | 34.2 | % | | | 240 | | bps | | | 38.6 | % | | | (200 | ) | bps |
Effective tax rate | | 20.9 | % | | | 24.2 | % | | | (330 | ) | bps | | | 26.0 | % | | | (510 | ) | bps |
As adjusted: | | | | | | | | | | | | | | | | |
Operating income (1) | $ | 2,326 | | | $ | 1,716 | | | $ | 610 | | | | $ | 2,128 | | | $ | 198 | | |
Operating margin (1) | | 45.5 | % | | | 41.6 | % | | | 390 | | bps | | | 45.8 | % | | | (30 | ) | bps |
Nonoperating income (expense), less net income (loss) attributable to noncontrolling interests (2) | $ | 39 | | | $ | 199 | | | $ | (160 | ) | | | $ | 190 | | | $ | (151 | ) | |
Net income attributable to BlackRock, Inc. (3) | $ | 1,874 | | | $ | 1,451 | | | $ | 423 | | | | $ | 1,715 | | | $ | 159 | | |
Diluted earnings attributable to BlackRock, Inc. common stockholders per share (3) | $ | 11.93 | | | $ | 9.66 | | | $ | 2.27 | | | | $ | 11.46 | | | $ | 0.47 | | |
Effective tax rate | | 20.8 | % | | | 24.2 | % | | | (340 | ) | bps | | | 26.0 | % | | | (520 | ) | bps |
| | | | | | | | | | | | | | | | |
See pages 10 through 12 for the reconciliation to accounting principles generally accepted in the United States ("GAAP") and notes (1) through (3) to the condensed consolidated statements of income and supplemental information for more information on as adjusted items. Beginning in the first quarter of 2024, BlackRock, Inc. updated the presentation of the Company’s expense line items within the condensed consolidated statements of income by including a new “sales, asset and account expense” income statement caption. Such expense line items have been recast for 2023 to conform to this new presentation. For a recast of 2023 expense line items, see page 12 of Exhibit 99.1 to the Current Report on Form 8-K furnished on April 12, 2024. |
| | | | | | | | | | | | | | | | | | | | | |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION |
(in millions, except per share data), (unaudited) |
| | | | | | | | | |
| Year Ended | | | | | |
| December 31, | | | | | |
| 2024 | | | 2023 | | | Change | | |
Revenue | | | | | | | | | |
Investment advisory, administration fees and securities lending revenue: | | | | | | | | | |
Investment advisory and administration fees | $ | 15,485 | | | $ | 13,724 | | | $ | 1,761 | | |
Securities lending revenue | | 615 | | | | 675 | | | | (60 | ) | |
Total investment advisory, administration fees and securities lending revenue | | 16,100 | | | | 14,399 | | | | 1,701 | | |
Investment advisory performance fees | | 1,207 | | | | 554 | | | | 653 | | |
Technology services revenue | | 1,603 | | | | 1,485 | | | | 118 | | |
Distribution fees | | 1,273 | | | | 1,262 | | | | 11 | | |
Advisory and other revenue | | 224 | | | | 159 | | | | 65 | | |
Total revenue | | 20,407 | | | | 17,859 | | | | 2,548 | | |
| | | | | | | | | |
Expense | | | | | | | | | |
Employee compensation and benefits | | 6,546 | | | | 5,779 | | | | 767 | | |
Sales, asset and account expense: | | | | | | | | | |
Distribution and servicing costs | | 2,171 | | | | 2,051 | | | | 120 | | |
Direct fund expense | | 1,464 | | | | 1,331 | | | | 133 | | |
Sub-advisory and other | | 140 | | | | 116 | | | | 24 | | |
Total sales, asset and account expense | | 3,775 | | | | 3,498 | | | | 277 | | |
General and administration expense | | 2,221 | | | | 2,095 | | | | 126 | | |
Restructuring charge | | - | | | | 61 | | | | (61 | ) | |
Amortization and impairment of intangible assets | | 291 | | | | 151 | | | | 140 | | |
Total expense | | 12,833 | | | | 11,584 | | | | 1,249 | | |
| | | | | | | | | |
Operating income | | 7,574 | | | | 6,275 | | | | 1,299 | | |
| | | | | | | | | |
Nonoperating income (expense) | | | | | | | | | |
Net gain (loss) on investments | | 492 | | | | 699 | | | | (207 | ) | |
Interest and dividend income | | 767 | | | | 473 | | | | 294 | | |
Interest expense | | (538 | ) | | | (292 | ) | | | (246 | ) | |
Total nonoperating income (expense) | | 721 | | | | 880 | | | | (159 | ) | |
| | | | | | | | | |
Income before income taxes | | 8,295 | | | | 7,155 | | | | 1,140 | | |
Income tax expense | | 1,783 | | | | 1,479 | | | | 304 | | |
Net income | | 6,512 | | | | 5,676 | | | | 836 | | |
Less: | | | | | | | | | |
Net income (loss) attributable to noncontrolling interests | | 143 | | | | 174 | | | | (31 | ) | |
Net income attributable to BlackRock, Inc. | $ | 6,369 | | | $ | 5,502 | | | $ | 867 | | |
| | | | | | | | | |
Weighted-average common shares outstanding | | | | | | | | | |
Basic | | 150.0 | | | | 149.3 | | | | 0.7 | | |
Diluted | | 151.6 | | | | 150.7 | | | | 0.9 | | |
Earnings per share attributable to BlackRock, Inc. common stockholders | | | | | | | | | |
Basic | $ | 42.45 | | | $ | 36.85 | | | $ | 5.60 | | |
Diluted | $ | 42.01 | | | $ | 36.51 | | | $ | 5.50 | | |
Cash dividends declared and paid per share | $ | 20.40 | | | $ | 20.00 | | | $ | 0.40 | | |
| | | | | | | | | |
Supplemental information: | | | | | | | | | |
| | | | | | | | | |
AUM (end of period) | $ | 11,551,251 | | | $ | 10,008,995 | | | $ | 1,542,256 | | |
Shares outstanding (end of period) | | 154.9 | | | | 148.5 | | | | 6.4 | | |
GAAP: | | | | | | | | | |
Operating margin | | 37.1 | % | | | 35.1 | % | | | 200 | | bps |
Effective tax rate | | 21.9 | % | | | 21.2 | % | | | 70 | | bps |
As adjusted: | | | | | | | | | |
Operating income (1) | $ | 8,110 | | | $ | 6,593 | | | $ | 1,517 | | |
Operating margin (1) | | 44.5 | % | | | 41.7 | % | | | 280 | | bps |
Nonoperating income (expense), less net income (loss) attributable to noncontrolling interests (2) | $ | 533 | | | $ | 648 | | | $ | (115 | ) | |
Net income attributable to BlackRock, Inc. (3) | $ | 6,612 | | | $ | 5,692 | | | $ | 920 | | |
Diluted earnings attributable to BlackRock, Inc. common stockholders per share (3) | $ | 43.61 | | | $ | 37.77 | | | $ | 5.84 | | |
Effective tax rate | | 23.5 | % | | | 21.4 | % | | | 210 | | bps |
| | | | | | | | | |
See pages 10 through 12 for the reconciliation to GAAP and notes (1) through (3) to the condensed consolidated statements of income and supplemental information for more information on as adjusted items. Beginning in the first quarter of 2024, BlackRock, Inc. updated the presentation of the Company’s expense line items within the condensed consolidated statements of income by including a new “sales, asset and account expense” income statement caption. Such expense line items have been recast for 2023 to conform to this new presentation. For a recast of 2023 expense line items, see page 12 of Exhibit 99.1 to the Current Report on Form 8-K furnished on April 12, 2024. |
| | | | | | | | | | | | |
ASSETS UNDER MANAGEMENT | |
(in millions), (unaudited) | |
Current Quarter Component Changes by Client Type and Product Type | |
| | | | Net | | | | | | | | | | | | | | | | |
| September 30, | | | inflows | | | | | | Market | | | | | | December 31, | | | | |
| 2024 | | | (outflows) | | |
Acquisition(1)
| | | change | | |
FX impact(2)
| | | 2024 | | |
Average AUM(3)
| |
Retail: | | | | | | | | | | | | | | | | | | | | |
Equity | $ | 521,270 | | | $ | (127 | ) | | $ | - | | | $ | (7,209 | ) | | $ | (8,816 | ) | | $ | 505,118 | | | $ | 514,867 | |
Fixed income | | 324,245 | | | | 4,155 | | | | - | | | | (4,823 | ) | | | (4,936 | ) | | | 318,641 | | | | 321,799 | |
Multi-asset | | 154,078 | | | | (424 | ) | | | - | | | | (1,909 | ) | | | (767 | ) | | | 150,978 | | | | 152,157 | |
Alternatives | | 41,608 | | | | 1,046 | | | | - | | | | (1,009 | ) | | | (555 | ) | | | 41,090 | | | | 41,243 | |
Retail subtotal | | 1,041,201 | | | | 4,650 | | | | - | | | | (14,950 | ) | | | (15,074 | ) | | | 1,015,827 | | | | 1,030,066 | |
ETFs: | | | | | | | | | | | | | | | | | | | | |
Equity | | 3,061,840 | | | | 110,601 | | | | - | | | | (43,614 | ) | | | (22,429 | ) | | | 3,106,398 | | | | 3,090,667 | |
Fixed income | | 1,019,176 | | | | 11,834 | | | | - | | | | (34,956 | ) | | | (10,402 | ) | | | 985,652 | | | | 1,005,156 | |
Multi-asset | | 10,036 | | | | 1,070 | | | | - | | | | (153 | ) | | | (219 | ) | | | 10,734 | | | | 10,281 | |
Alternatives | | 97,283 | | | | 19,136 | | | | - | | | | 11,332 | | | | (160 | ) | | | 127,591 | | | | 115,012 | |
ETFs subtotal | | 4,188,335 | | | | 142,641 | | | | - | | | | (67,391 | ) | | | (33,210 | ) | | | 4,230,375 | | | | 4,221,116 | |
Institutional: | | | | | | | | | | | | | | | | | | | | |
Active: | | | | | | | | | | | | | | | | | | | | |
Equity | | 225,361 | | | | (2,050 | ) | | | - | | | | 2,432 | | | | (6,895 | ) | | | 218,848 | | | | 222,045 | |
Fixed income | | 873,385 | | | | (1,509 | ) | | | - | | | | (18,258 | ) | | | (13,290 | ) | | | 840,328 | | | | 851,910 | |
Multi-asset | | 833,975 | | | | 23,844 | | | | - | | | | (8,141 | ) | | | (21,639 | ) | | | 828,039 | | | | 835,579 | |
Alternatives | | 178,223 | | | | 4,841 | | | | 69,875 | | | | 448 | | | | (3,853 | ) | | | 249,534 | | | | 230,800 | |
Active subtotal | | 2,110,944 | | | | 25,126 | | | | 69,875 | | | | (23,519 | ) | | | (45,677 | ) | | | 2,136,749 | | | | 2,140,334 | |
Index: | | | | | | | | | | | | | | | | | | | | |
Equity | | 2,472,528 | | | | 18,142 | | | | - | | | | 46,933 | | | | (57,776 | ) | | | 2,479,827 | | | | 2,493,289 | |
Fixed income | | 806,888 | | | | 9,304 | | | | - | | | | (14,389 | ) | | | (40,755 | ) | | | 761,048 | | | | 780,330 | |
Multi-asset | | 3,426 | | | | (183 | ) | | | - | | | | (1 | ) | | | (72 | ) | | | 3,170 | | | | 3,325 | |
Alternatives | | 2,653 | | | | 988 | | | | - | | | | 19 | | | | (68 | ) | | | 3,592 | | | | 3,149 | |
Index subtotal | | 3,285,495 | | | | 28,251 | | | | - | | | | 32,562 | | | | (98,671 | ) | | | 3,247,637 | | | | 3,280,093 | |
Institutional subtotal | | 5,396,439 | | | | 53,377 | | | | 69,875 | | | | 9,043 | | | | (144,348 | ) | | | 5,384,386 | | | | 5,420,427 | |
Long-term | | 10,625,975 | | | | 200,668 | | | | 69,875 | | | | (73,298 | ) | | | (192,632 | ) | | | 10,630,588 | | | | 10,671,609 | |
Cash management | | 849,387 | | | | 80,748 | | | | - | | | | 2,521 | | | | (11,993 | ) | | | 920,663 | | | | 883,825 | |
Total | $ | 11,475,362 | | | $ | 281,416 | | | $ | 69,875 | | | $ | (70,777 | ) | | $ | (204,625 | ) | | $ | 11,551,251 | | | $ | 11,555,434 | |
Current Quarter Component Changes by Investment Style and Product Type (Long-Term) | |
| | | | Net | | | | | | | | | | | | | | | | |
| September 30, | | | inflows | | | | | | Market | | | | | | December 31, | | | | |
| 2024 | | | (outflows) | | |
Acquisition(1)
| | | change | | |
FX impact(2)
| | | 2024 | | |
Average AUM(3)
| |
Active: | | | | | | | | | | | | | | | | | | | | |
Equity | $ | 492,193 | | | $ | (8,057 | ) | | $ | - | | | $ | (6,198 | ) | | $ | (10,775 | ) | | $ | 467,163 | | | $ | 480,255 | |
Fixed income | | 1,171,739 | | | | 1,580 | | | | - | | | | (22,623 | ) | | | (16,822 | ) | | | 1,133,874 | | | | 1,148,283 | |
Multi-asset | | 988,035 | | | | 23,420 | | | | - | | | | (10,050 | ) | | | (22,404 | ) | | | 979,001 | | | | 987,720 | |
Alternatives | | 219,824 | | | | 5,887 | | | | 69,875 | | | | (560 | ) | | | (4,408 | ) | | | 290,618 | | | | 272,039 | |
Active subtotal | | 2,871,791 | | | | 22,830 | | | | 69,875 | | | | (39,431 | ) | | | (54,409 | ) | | | 2,870,656 | | | | 2,888,297 | |
Index and ETFs: | | | | | | | | | | | | | | | | | | | | |
ETFs: | | | | | | | | | | | | | | | | | | | | |
Equity | | 3,061,840 | | | | 110,601 | | | | - | | | | (43,614 | ) | | | (22,429 | ) | | | 3,106,398 | | | | 3,090,667 | |
Fixed income | | 1,019,176 | | | | 11,834 | | | | - | | | | (34,956 | ) | | | (10,402 | ) | | | 985,652 | | | | 1,005,156 | |
Multi-asset | | 10,036 | | | | 1,070 | | | | - | | | | (153 | ) | | | (219 | ) | | | 10,734 | | | | 10,281 | |
Alternatives | | 97,283 | | | | 19,136 | | | | - | | | | 11,332 | | | | (160 | ) | | | 127,591 | | | | 115,012 | |
ETFs subtotal | | 4,188,335 | | | | 142,641 | | | | - | | | | (67,391 | ) | | | (33,210 | ) | | | 4,230,375 | | | | 4,221,116 | |
Non-ETF index: | | | | | | | | | | | | | | | | | | | | |
Equity | | 2,726,966 | | | | 24,022 | | | | - | | | | 48,354 | | | | (62,712 | ) | | | 2,736,630 | | | | 2,749,946 | |
Fixed income | | 832,779 | | | | 10,370 | | | | - | | | | (14,847 | ) | | | (42,159 | ) | | | 786,143 | | | | 805,756 | |
Multi-asset | | 3,444 | | | | (183 | ) | | | - | | | | (1 | ) | | | (74 | ) | | | 3,186 | | | | 3,341 | |
Alternatives | | 2,660 | | | | 988 | | | | - | | | | 18 | | | | (68 | ) | | | 3,598 | | | | 3,153 | |
Non-ETF index subtotal | | 3,565,849 | | | | 35,197 | | | | - | | | | 33,524 | | | | (105,013 | ) | | | 3,529,557 | | | | 3,562,196 | |
Index and ETFs subtotal | | 7,754,184 | | | | 177,838 | | | | - | | | | (33,867 | ) | | | (138,223 | ) | | | 7,759,932 | | | | 7,783,312 | |
Long-term | $ | 10,625,975 | | | $ | 200,668 | | | $ | 69,875 | | | $ | (73,298 | ) | | $ | (192,632 | ) | | $ | 10,630,588 | | | $ | 10,671,609 | |
Current Quarter Component Changes by Product Type (Long-Term) | |
| | | | Net | | | | | | | | | | | | | | | | |
| September 30, | | | inflows | | | | | | Market | | | | | | December 31, | | | | |
| 2024 | | | (outflows) | | |
Acquisition(1)
| | | change | | |
FX impact(2)
| | | 2024 | | |
Average AUM(3)
| |
Equity | $ | 6,280,999 | | | $ | 126,566 | | | $ | - | | | $ | (1,458 | ) | | $ | (95,916 | ) | | $ | 6,310,191 | | | $ | 6,320,868 | |
Fixed income | | 3,023,694 | | | | 23,784 | | | | - | | | | (72,426 | ) | | | (69,383 | ) | | | 2,905,669 | | | | 2,959,195 | |
Multi-asset | | 1,001,515 | | | | 24,307 | | | | - | | | | (10,204 | ) | | | (22,697 | ) | | | 992,921 | | | | 1,001,342 | |
Alternatives: | | | | | | | | | | | | | | | | | | | | |
Private markets | | 141,409 | | | | 4,730 | | | | 69,875 | | | | (746 | ) | | | (3,294 | ) | | | 211,974 | | | | 193,493 | |
Liquid alternatives | | 75,990 | | | | 1,165 | | | | - | | | | 240 | | | | (1,005 | ) | | | 76,390 | | | | 76,211 | |
Currency and commodities(4) | | 102,368 | | | | 20,116 | | | | - | | | | 11,296 | | | | (337 | ) | | | 133,443 | | | | 120,500 | |
Alternatives subtotal | | 319,767 | | | | 26,011 | | | | 69,875 | | | | 10,790 | | | | (4,636 | ) | | | 421,807 | | | | 390,204 | |
Long-term | $ | 10,625,975 | | | $ | 200,668 | | | $ | 69,875 | | | $ | (73,298 | ) | | $ | (192,632 | ) | | $ | 10,630,588 | | | $ | 10,671,609 | |
_________________________ |
(1) | | Amounts include AUM attributable to the acquisition of Global Infrastructure Management, LLC ("GIP") in October 2024 (the "GIP Transaction"). |
(2) | | Foreign exchange reflects the impact of translating non-US dollar denominated AUM into US dollars for reporting purposes. |
(3) | | Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing four months. |
(4) | | Amounts include cryptocurrency and commodity
ETFs and ETPs
. |
| | |
ASSETS UNDER MANAGEMENT | |
(in millions), (unaudited) | |
Year-over-Year Component Changes by Client Type and Product Type | |
| | | | Net | | | | | | | | | | | | | | | | |
| December 31, | | | inflows | | | | | | Market | | | | | | December 31, | | | | |
| 2023 | | | (outflows) | | |
Acquisition(1)
| | | change | | |
FX impact(2)
| | | 2024 | | |
Average AUM(3)
| |
Retail: | | | | | | | | | | | | | | | | | | | | |
Equity | $ | 435,734 | | | $ | 15,285 | | | $ | 4,074 | | | $ | 54,257 | | | $ | (4,232 | ) | | $ | 505,118 | | | $ | 485,161 | |
Fixed income | | 312,799 | | | | 11,671 | | | | - | | | | 1,483 | | | | (7,312 | ) | | | 318,641 | | | | 316,520 | |
Multi-asset | | 139,537 | | | | (2,328 | ) | | | - | | | | 14,420 | | | | (651 | ) | | | 150,978 | | | | 147,169 | |
Alternatives | | 41,627 | | | | (261 | ) | | | - | | | | 69 | | | | (345 | ) | | | 41,090 | | | | 41,087 | |
Retail subtotal | | 929,697 | | | | 24,367 | | | | 4,074 | | | | 70,229 | | | | (12,540 | ) | | | 1,015,827 | | | | 989,937 | |
ETFs: | | | | | | | | | | | | | | | | | | | | |
Equity | | 2,532,631 | | | | 236,357 | | | | - | | | | 359,322 | | | | (21,912 | ) | | | 3,106,398 | | | | 2,845,456 | |
Fixed income | | 898,403 | | | | 112,341 | | | | - | | | | (16,291 | ) | | | (8,801 | ) | | | 985,652 | | | | 948,250 | |
Multi-asset | | 9,140 | | | | 1,025 | | | | - | | | | 841 | | | | (272 | ) | | | 10,734 | | | | 9,451 | |
Alternatives | | 59,125 | | | | 40,710 | | | | - | | | | 27,919 | | | | (163 | ) | | | 127,591 | | | | 89,331 | |
ETFs subtotal | | 3,499,299 | | | | 390,433 | | | | - | | | | 371,791 | | | | (31,148 | ) | | | 4,230,375 | | | | 3,892,488 | |
Institutional: | | | | | | | | | | | | | | | | | | | | |
Active: | | | | | | | | | | | | | | | | | | | | |
Equity | | 186,688 | | | | 5,380 | | | | - | | | | 30,876 | | | | (4,096 | ) | | | 218,848 | | | | 207,929 | |
Fixed income | | 836,823 | | | | (2,843 | ) | | | - | | | | 16,885 | | | | (10,537 | ) | | | 840,328 | | | | 841,830 | |
Multi-asset | | 717,182 | | | | 54,887 | | | | - | | | | 72,798 | | | | (16,828 | ) | | | 828,039 | | | | 774,210 | |
Alternatives | | 171,980 | | | | 7,023 | | | | 69,875 | | | | 3,618 | | | | (2,962 | ) | | | 249,534 | | | | 191,190 | |
Active subtotal | | 1,912,673 | | | | 64,447 | | | | 69,875 | | | | 124,177 | | | | (34,423 | ) | | | 2,136,749 | | | | 2,015,159 | |
Index: | | | | | | | | | | | | | | | | | | | | |
Equity | | 2,138,291 | | | | (31,454 | ) | | | - | | | | 420,860 | | | | (47,870 | ) | | | 2,479,827 | | | | 2,333,824 | |
Fixed income | | 756,001 | | | | 42,500 | | | | - | | | | (5,068 | ) | | | (32,385 | ) | | | 761,048 | | | | 759,871 | |
Multi-asset | | 4,945 | | | | (1,906 | ) | | | - | | | | 204 | | | | (73 | ) | | | 3,170 | | | | 3,693 | |
Alternatives | | 3,252 | | | | 234 | | | | - | | | | 165 | | | | (59 | ) | | | 3,592 | | | | 2,912 | |
Index subtotal | | 2,902,489 | | | | 9,374 | | | | - | | | | 416,161 | | | | (80,387 | ) | | | 3,247,637 | | | | 3,100,300 | |
Institutional subtotal | | 4,815,162 | | | | 73,821 | | | | 69,875 | | | | 540,338 | | | | (114,810 | ) | | | 5,384,386 | | | | 5,115,459 | |
Long-term | | 9,244,158 | | | | 488,621 | | | | 73,949 | | | | 982,358 | | | | (158,498 | ) | | | 10,630,588 | | | | 9,997,884 | |
Cash management | | 764,837 | | | | 152,730 | | | | - | | | | 10,606 | | | | (7,510 | ) | | | 920,663 | | | | 806,123 | |
Total | $ | 10,008,995 | | | $ | 641,351 | | | $ | 73,949 | | | $ | 992,964 | | | $ | (166,008 | ) | | $ | 11,551,251 | | | $ | 10,804,007 | |
Year-over-Year Component Changes by Investment Style and Product Type (Long-Term) | |
| | | | Net | | | | | | | | | | | | | | | | |
| December 31, | | | inflows | | | | | | Market | | | | | | December 31, | | | | |
| 2023 | | | (outflows) | | |
Acquisition(1)
| | | change | | |
FX impact(2)
| | | 2024 | | |
Average AUM(3)
| |
Active: | | | | | | | | | | | | | | | | | | | | |
Equity | $ | 427,448 | | | $ | (6,333 | ) | | $ | 4,074 | | | $ | 48,479 | | | $ | (6,505 | ) | | $ | 467,163 | | | $ | 461,583 | |
Fixed income | | 1,123,422 | | | | 9,184 | | | | - | | | | 18,516 | | | | (17,248 | ) | | | 1,133,874 | | | | 1,133,152 | |
Multi-asset | | 856,705 | | | | 52,553 | | | | - | | | | 87,221 | | | | (17,478 | ) | | | 979,001 | | | | 921,364 | |
Alternatives | | 213,603 | | | | 6,760 | | | | 69,875 | | | | 3,687 | | | | (3,307 | ) | | | 290,618 | | | | 232,274 | |
Active subtotal | | 2,621,178 | | | | 62,164 | | | | 73,949 | | | | 157,903 | | | | (44,538 | ) | | | 2,870,656 | | | | 2,748,373 | |
Index and ETFs: | | | | | | | | | | | | | | | | | | | | |
ETFs: | | | | | | | | | | | | | | | | | | | | |
Equity | | 2,532,631 | | | | 236,357 | | | | - | | | | 359,322 | | | | (21,912 | ) | | | 3,106,398 | | | | 2,845,456 | |
Fixed income | | 898,403 | | | | 112,341 | | | | - | | | | (16,291 | ) | | | (8,801 | ) | | | 985,652 | | | | 948,250 | |
Multi-asset | | 9,140 | | | | 1,025 | | | | - | | | | 841 | | | | (272 | ) | | | 10,734 | | | | 9,451 | |
Alternatives | | 59,125 | | | | 40,710 | | | | - | | | | 27,919 | | | | (163 | ) | | | 127,591 | | | | 89,331 | |
ETFs subtotal | | 3,499,299 | | | | 390,433 | | | | - | | | | 371,791 | | | | (31,148 | ) | | | 4,230,375 | | | | 3,892,488 | |
Non-ETF index: | | | | | | | | | | | | | | | | | | | | |
Equity | | 2,333,265 | | | | (4,456 | ) | | | - | | | | 457,514 | | | | (49,693 | ) | | | 2,736,630 | | | | 2,565,331 | |
Fixed income | | 782,201 | | | | 42,144 | | | | - | | | | (5,216 | ) | | | (32,986 | ) | | | 786,143 | | | | 785,069 | |
Multi-asset | | 4,959 | | | | (1,900 | ) | | | - | | | | 201 | | | | (74 | ) | | | 3,186 | | | | 3,708 | |
Alternatives | | 3,256 | | | | 236 | | | | - | | | | 165 | | | | (59 | ) | | | 3,598 | | | | 2,915 | |
Non-ETF index subtotal | | 3,123,681 | | | | 36,024 | | | | - | | | | 452,664 | | | | (82,812 | ) | | | 3,529,557 | | | | 3,357,023 | |
Index and ETFs subtotal | | 6,622,980 | | | | 426,457 | | | | - | | | | 824,455 | | | | (113,960 | ) | | | 7,759,932 | | | | 7,249,511 | |
Long-term | $ | 9,244,158 | | | $ | 488,621 | | | $ | 73,949 | | | $ | 982,358 | | | $ | (158,498 | ) | | $ | 10,630,588 | | | $ | 9,997,884 | |
Year-over-Year Component Changes by Product Type (Long-Term) | |
| | | | Net | | | | | | | | | | | | | | | | |
| December 31, | | | inflows | | | | | | Market | | | | | | December 31, | | | | |
| 2023 | | | (outflows) | | |
Acquisition(1)
| | | change | | |
FX impact(2)
| | | 2024 | | |
Average AUM(3)
| |
Equity | $ | 5,293,344 | | | $ | 225,568 | | | $ | 4,074 | | | $ | 865,315 | | | $ | (78,110 | ) | | $ | 6,310,191 | | | $ | 5,872,370 | |
Fixed income | | 2,804,026 | | | | 163,669 | | | | - | | | | (2,991 | ) | | | (59,035 | ) | | | 2,905,669 | | | | 2,866,471 | |
Multi-asset | | 870,804 | | | | 51,678 | | | | - | | | | 88,263 | | | | (17,824 | ) | | | 992,921 | | | | 934,523 | |
Alternatives: | | | | | | | | | | | | | | | | | | | | |
Private markets | | 136,909 | | | | 9,457 | | | | 69,875 | | | | (1,803 | ) | | | (2,464 | ) | | | 211,974 | | | | 154,597 | |
Liquid alternatives | | 74,233 | | | | (2,609 | ) | | | - | | | | 5,482 | | | | (716 | ) | | | 76,390 | | | | 75,402 | |
Currency and commodities(4) | | 64,842 | | | | 40,858 | | | | - | | | | 28,092 | | | | (349 | ) | | | 133,443 | | | | 94,521 | |
Alternatives subtotal | | 275,984 | | | | 47,706 | | | | 69,875 | | | | 31,771 | | | | (3,529 | ) | | | 421,807 | | | | 324,520 | |
Long-term | $ | 9,244,158 | | | $ | 488,621 | | | $ | 73,949 | | | $ | 982,358 | | | $ | (158,498 | ) | | $ | 10,630,588 | | | $ | 9,997,884 | |
_________________________ |
(1) | | Amounts include AUM attributable to the GIP Transaction and the acquisition of SpiderRock Advisors, LLC in May 2024 (the "SpiderRock Transaction"). |
(2) | | Foreign exchange reflects the impact of translating non-US dollar denominated AUM into US dollars for reporting purposes. |
(3) | | Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing thirteen months. |
(4) | | Amounts include cryptocurrency and commodity
ETFs and ETPs
. |
| | |
SUMMARY OF REVENUE |
| Three Months | | | | | | Three Months | | | | | | | | | | |
| Ended | | | | | | Ended | | | | | | Year Ended | | | | |
| December 31, | | | | | | September 30, | | | | | | December 31, | | | | |
(in millions), (unaudited) | 2024 | | | 2023 | | | Change | | | 2024 | | | Change | | | 2024 | | | 2023 | | | Change | |
Revenue | | | | | | | | | | | | | | | | | | | | | | | |
Investment advisory, administration fees and securities lending revenue: | | | | | | | | | | | | | | | | | | | | | | | |
Equity: | | | | | | | | | | | | | | | | | | | | | | | |
Active | $ | 558 | | | $ | 484 | | | $ | 74 | | | $ | 553 | | | $ | 5 | | | $ | 2,166 | | | $ | 2,000 | | | $ | 166 | |
ETFs | | 1,375 | | | | 1,102 | | | | 273 | | | | 1,309 | | | | 66 | | | | 5,124 | | | | 4,418 | | | | 706 | |
Non-ETF index | | 209 | | | | 183 | | | | 26 | | | | 198 | | | | 11 | | | | 784 | | | | 743 | | | | 41 | |
Equity subtotal | | 2,142 | | | | 1,769 | | | | 373 | | | | 2,060 | | | | 82 | | | | 8,074 | | | | 7,161 | | | | 913 | |
Fixed income: | | | | | | | | | | | | | | | | | | | | | | | |
Active | | 494 | | | | 468 | | | | 26 | | | | 493 | | | | 1 | | | | 1,952 | | | | 1,897 | | | | 55 | |
ETFs | | 360 | | | | 311 | | | | 49 | | | | 354 | | | | 6 | | | | 1,367 | | | | 1,230 | | | | 137 | |
Non-ETF index | | 96 | | | | 85 | | | | 11 | | | | 93 | | | | 3 | | | | 369 | | | | 353 | | | | 16 | |
Fixed income subtotal | | 950 | | | | 864 | | | | 86 | | | | 940 | | | | 10 | | | | 3,688 | | | | 3,480 | | | | 208 | |
Multi-asset | | 326 | | | | 299 | | | | 27 | | | | 325 | | | | 1 | | | | 1,278 | | | | 1,203 | | | | 75 | |
Alternatives: | | | | | | | | | | | | | | | | | | | | | | | |
Private markets | | 480 | | | | 251 | | | | 229 | | | | 235 | | | | 245 | | | | 1,196 | | | | 889 | | | | 307 | |
Liquid alternatives | | 146 | | | | 138 | | | | 8 | | | | 143 | | | | 3 | | | | 568 | | | | 572 | | | | (4 | ) |
Currency and commodities(1) | | 80 | | | | 44 | | | | 36 | | | | 63 | | | | 17 | | | | 247 | | | | 185 | | | | 62 | |
Alternatives subtotal | | 706 | | | | 433 | | | | 273 | | | | 441 | | | | 265 | | | | 2,011 | | | | 1,646 | | | | 365 | |
Long-term | | 4,124 | | | | 3,365 | | | | 759 | | | | 3,766 | | | | 358 | | | | 15,051 | | | | 13,490 | | | | 1,561 | |
Cash management | | 293 | | | | 240 | | | | 53 | | | | 264 | | | | 29 | | | | 1,049 | | | | 909 | | | | 140 | |
Total investment advisory, administration fees and securities lending revenue | | 4,417 | | | | 3,605 | | | | 812 | | | | 4,030 | | | | 387 | | | | 16,100 | | | | 14,399 | | | | 1,701 | |
Investment advisory performance fees: | | | | | | | | | | | | | | | | | | | | | | | |
Equity | | 112 | | | | 61 | | | | 51 | | | | 13 | | | | 99 | | | | 161 | | | | 99 | | | | 62 | |
Fixed income | | 22 | | | | 2 | | | | 20 | | | | 3 | | | | 19 | | | | 34 | | | | 4 | | | | 30 | |
Multi-asset | | 10 | | | | 5 | | | | 5 | | | | 1 | | | | 9 | | | | 24 | | | | 28 | | | | (4 | ) |
Alternatives: | | | | | | | | | | | | | | | | | | | | | | | |
Private markets | | 108 | | | | 149 | | | | (41 | ) | | | 7 | | | | 101 | | | | 308 | | | | 273 | | | | 35 | |
Liquid alternatives | | 199 | | | | 94 | | | | 105 | | | | 364 | | | | (165 | ) | | | 680 | | | | 150 | | | | 530 | |
Alternatives subtotal | | 307 | | | | 243 | | | | 64 | | | | 371 | | | | (64 | ) | | | 988 | | | | 423 | | | | 565 | |
Total investment advisory performance fees | | 451 | | | | 311 | | | | 140 | | | | 388 | | | | 63 | | | | 1,207 | | | | 554 | | | | 653 | |
Technology services revenue | | 428 | | | | 379 | | | | 49 | | | | 403 | | | | 25 | | | | 1,603 | | | | 1,485 | | | | 118 | |
Distribution fees | | 322 | | | | 303 | | | | 19 | | | | 323 | | | | (1 | ) | | | 1,273 | | | | 1,262 | | | | 11 | |
Advisory and other revenue: | | | | | | | | | | | | | | | | | | | | | | | |
Advisory | | 14 | | | | 15 | | | | (1 | ) | | | 11 | | | | 3 | | | | 49 | | | | 81 | | | | (32 | ) |
Other | | 45 | | | | 18 | | | | 27 | | | | 42 | | | | 3 | | | | 175 | | | | 78 | | | | 97 | |
Total advisory and other revenue | | 59 | | | | 33 | | | | 26 | | | | 53 | | | | 6 | | | | 224 | | | | 159 | | | | 65 | |
Total revenue | $ | 5,677 | | | $ | 4,631 | | | $ | 1,046 | | | $ | 5,197 | | | $ | 480 | | | $ | 20,407 | | | $ | 17,859 | | | $ | 2,548 | |
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(1) | | Amounts include cryptocurrency and commodity ETFs and ETPs. |
Highlights
- Investment advisory, administration fees and securities lending revenue increased $812 million from the fourth quarter of 2023 and $387 million from the third quarter of 2024, primarily driven by organic base fee growth, the impact of market beta on average AUM and approximately $230 million of fees related to AUM acquired in the GIP Transaction.
Securities lending revenue of $161 million increased from $157 million in the fourth quarter of 2023 and $149 million in the third quarter of 2024. - Performance fees increased $140 million from the fourth quarter of 2023, reflecting higher revenue from liquid alternative and long-only products, partially offset by lower revenue from private markets products.
Performance fees increased $63 million from the third quarter of 2024, primarily driven by higher revenue from private markets and long-only products, partially offset by strong performance from a single hedge fund with an annual performance measurement period that ends in the third quarter. - Technology services revenue increased $49 million from the fourth quarter of 2023 and $25 million from the third quarter of 2024, reflecting the successful onboarding of a number of new clients. Technology services annual contract value (“ACV”)(1)increased 12% from the fourth quarter of 2023, driven by strong demand for a full range of Aladdin technology offerings.
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(1) | | See note (4) to the condensed consolidated statements of income and supplemental information on page 12 for more information on ACV. |
| | |
SUMMARY OF OPERATING EXPENSE |
| Three Months | | | | | | Three Months | | | | | | | | | | |
| Ended | | | | | | Ended | | | | | | Year Ended | | | | |
| December 31, | | | | | | September 30, | | | | | | December 31, | | | | |
(in millions), (unaudited) | 2024 | | | 2023 | | | Change | | | 2024 | | | Change | | | 2024 | | | 2023 | | | Change | |
Operating expense | | | | | | | | | | | | | | | | | | | | | | | |
Employee compensation and benefits | $ | 1,885 | | | $ | 1,503 | | | $ | 382 | | | $ | 1,578 | | | $ | 307 | | | $ | 6,546 | | | $ | 5,779 | | | $ | 767 | |
Sales, asset and account expense(1)
: | | | | | | | | | | | | | | | | | | | | | | | |
Distribution and servicing costs | | 565 | | | | 502 | | | | 63 | | | | 549 | | | | 16 | | | | 2,171 | | | | 2,051 | | | | 120 | |
Direct fund expense | | 389 | | | | 318 | | | | 71 | | | | 379 | | | | 10 | | | | 1,464 | | | | 1,331 | | | | 133 | |
Sub-advisory and other | | 42 | | | | 35 | | | | 7 | | | | 34 | | | | 8 | | | | 140 | | | | 116 | | | | 24 | |
Total sales, asset and account expense | | 996 | | | | 855 | | | | 141 | | | | 962 | | | | 34 | | | | 3,775 | | | | 3,498 | | | | 277 | |
General and administration expense: | | | | | | | | | | | | | | | | | | | | | | | |
Marketing and promotional | | 92 | | | | 87 | | | | 5 | | | | 64 | | | | 28 | | | | 314 | | | | 309 | | | | 5 | |
Occupancy and office related | | 113 | | | | 105 | | | | 8 | | | | 105 | | | | 8 | | | | 421 | | | | 418 | | | | 3 | |
Portfolio services | | 68 | | | | 68 | | | | - | | | | 65 | | | | 3 | | | | 262 | | | | 270 | | | | (8 | ) |
Technology | | 182 | | | | 186 | | | | (4 | ) | | | 175 | | | | 7 | | | | 674 | | | | 607 | | | | 67 | |
Professional services | | 88 | | | | 67 | | | | 21 | | | | 67 | | | | 21 | | | | 277 | | | | 195 | | | | 82 | |
Communications | | 10 | | | | 11 | | | | (1 | ) | | | 10 | | | | - | | | | 39 | | | | 47 | | | | (8 | ) |
Foreign exchange remeasurement | | (7 | ) | | | (4 | ) | | | (3 | ) | | | 3 | | | | (10 | ) | | | - | | | | (6 | ) | | | 6 | |
Contingent consideration fair value adjustments | | (28 | ) | | | 2 | | | | (30 | ) | | | (2 | ) | | | (26 | ) | | | (36 | ) | | | 3 | | | | (39 | ) |
Other general and administration | | 78 | | | | 67 | | | | 11 | | | | 75 | | | | 3 | | | | 270 | | | | 252 | | | | 18 | |
Total general and administration expense | | 596 | | | | 589 | | | | 7 | | | | 562 | | | | 34 | | | | 2,221 | | | | 2,095 | | | | 126 | |
Restructuring charge | | - | | | | 61 | | | | (61 | ) | | | - | | | | - | | | | - | | | | 61 | | | | (61 | ) |
Amortization and impairment of intangible assets | | 125 | | | | 38 | | | | 87 | | | | 89 | | | | 36 | | | | 291 | | | | 151 | | | | 140 | |
Total operating expense | $ | 3,602 | | | $ | 3,046 | | | $ | 556 | | | $ | 3,191 | | | $ | 411 | | | $ | 12,833 | | | $ | 11,584 | | | $ | 1,249 | |
| | | | | | | | | | | | | | | | | | | | | | | |
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(1) | | Beginning in the first quarter of 2024, BlackRock, Inc. updated the presentation of the Company’s expense line items within the condensed consolidated statements of income by including a new “sales, asset and account expense” income statement caption. Such expense line items have been recast for 2023 to conform to this new presentation. For a recast of 2023 expense line items, see page 12 of Exhibit 99.1 to the Current Report on Form 8-K furnished on April 12, 2024. |
Highlights
- Employee compensation and benefits expense increased $382 million from the fourth quarter of 2023 and $307 million from the third quarter of 2024, primarily reflecting higher incentive compensation as a result of higher performance fees and operating income. Fourth quarter 2024 employee compensation and benefit expense was also impacted by the GIP Transaction, including nonrecurring retention-related deferred compensation expense(1).
- Sales, asset and account expense increased $141 million from the fourth quarter of 2023 and $34 million from the third quarter of 2024, driven by higher distribution and servicing costs and direct fund expense, primarily reflecting higher average AUM.
- General and administration expense increased $7 million from the fourth quarter of 2023 and $34 million from the third quarter of 2024, primarily associated with the acquisition-related costs(1)in connection with the GIP Transaction, including transaction costs recorded in professional services expense, partially offset by lower contingent consideration fair value adjustments. The general and administration expense increase from the third quarter of 2024 also included higher seasonal marketing and promotional expense.
- Amortization and impairment of intangible assets(1)increased $87 million from the fourth quarter of 2023 and $36 million from the third quarter of 2024, primarily reflecting amortization of intangible assets acquired in the GIP Transaction. In addition, third quarter 2024 amortization and impairment of intangible assets included the impact of a $50 million noncash impairment charge related to certain of the Company's indefinite-lived management contracts.
- In the fourth quarter of 2023, a restructuring charge(1)of $61 million, comprised of severance and compensation expense for accelerated vesting of previously granted deferred compensation awards, was recorded in connection with initiatives to reorganize specific platforms, primarily Aladdin and private markets.
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(1) | | These expenses have been excluded from the Company's "as adjusted" financial results under the expense adjustments for acquisition-related costs and restructuring charge, as applicable. See pages 10 through 12 for the reconciliation to GAAP and notes (1) through (3) for more information on as adjusted items. |
| | |
SUMMARY OF NONOPERATING INCOME (EXPENSE), LESS NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS |
| Three Months | | | | | | Three Months | | | | | | | | | | |
| Ended | | | |