BlackRock’s assets reach record $10.6 trillion, as revenue and profits grow

BlackRock (BLK) said in its second-quarter earnings report released Monday that assets under management (AUM) hit a record $10.6 trillion, while profits and revenues rose year over year.

BlackRock’s second-quarter revenue rose 8% from a year earlier to $4.81 billion, while net income rose 9% to $1.5 billion, or $9.99 a share. Analysts had expected $4.84 billion in revenue and $1.5 billion in net income, or $9.78 a share, according to estimates compiled by Visible Alpha.

Higher fees and ETF growth drive profits

BlackRock’s revenues rose in the second quarter and first half of 2024, driven by higher fees and a record first half for inflows into the firm’s ETF funds, which saw net inflows of approximately $150 billion this year, including $83 billion in the second quarter.

“BlackRock generated nearly $140 billion in total net inflows in the first half of 2024, including $82 billion in the second quarter, resulting in a 3% increase in organic base fees,” BlackRock CEO Larry Fink said Monday. “Organic growth was driven by private markets, retail active fixed income and rising flows into our ETFs, which had their best start to a year ever.”

The growth in ETF listings in the first two quarters was also boosted by trading activity in new Bitcoin spot ETFs that were first approved earlier this year.

The company also noted “significant new growth markets” after announcing several acquisitions this year, including the purchase of market data firm Preqin, asset management firm SpiderRock Advisors and Global Infrastructure Partners.

Fink said the Global Infrastructure Partners deal is expected to close in the third quarter and is expected to “double private markets base fees and add approximately $100 billion of infrastructure assets.”

BlackRock shares rose 0.4% to $831 in premarket trading on Monday after the data was released.