BlackRock's Fourth-Quarter Profit Rose 19%, Exceeding Estimates
January 14 2021 - 7:10AM
Dow Jones News
By Dawn Lim
BlackRock Inc.'s quarterly profit rose 19% as investors turned
to the money-management giant's funds through November's election
uncertainty, vaccine breakthroughs and a year-end rally.
The investment company posted fourth-quarter profit of $1.5
billion, or $10.02 a share, up from $1.3 billion, or $8.29 a share,
a year earlier. BlackRock's revenue rose 13% to about $4.5 billion
from roughly $4 billion in the year earlier period.
The firm beat Wall Street analysts' profit and revenue
estimates.
The world's largest money manager scaled a new milestone in
assets under management, breaching the $8 trillion mark to $8.68
trillion in assets.
The company brought in $126.9 billion in new investor money,
down from $128.8 billion in the year-earlier quarter. Many rival
companies are expected to lose money in the uncertain economy,
struggling to stand out in a competitive industry with smaller
scale and less brand recognition.
BlackRock is best known for its iShares funds that trade on
exchanges and mirror markets. That business took in $79 billion in
new flows in the fourth quarter, up from $75.2 billion in the year
earlier period.
CEO Larry Fink has used the firm's scale to undercut the prices
of rival funds in popular index strategies while gaining reach in
more lucrative corners of finance such as private equity.
Across the board, BlackRock had net flows of $390.8 billion in
2020, down from $428.7 billion in 2019.
Write to Dawn Lim at dawn.lim@wsj.com
(END) Dow Jones Newswires
January 14, 2021 06:55 ET (11:55 GMT)
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