BlackRock Q1 revenue and profit both exceeded expectations, with AUM growing by 15% year-on-year to reach a historical high

Zhitong Finance APP learned that BlackRock (BLK.US) announced its first-quarter performance for 2024 on Friday. The company's profit increased as the global stock market rise boosted its investment advisory and management fees.

Data shows that in the three months ending on March 31, the world's largest asset management company's net profit rose to $1.57 billion, or $10.48 per share, a 37% increase from $1.16 billion, or $7.64 per share, in the same period last year. Adjusted net profit increased by 23% from the same period last year to $1.5 billion, or $9.81 per share, higher than the Wall Street average expectation of $9.34 per share.

Driven by the increase in asset management and performance fees, as well as the expansion of technology service revenue, total revenue for the quarter increased by 11% year-on-year to approximately $4.73 billion, surpassing analysts' expectations of $4.64 billion.

Investment advisory and management fees, which usually account for a certain proportion of the asset under management and are also BlackRock's main source of revenue, surged nearly 8.8% to $3.63 billion.

Boosted by the market rally and inflow of funds, the company's assets under management (AUM) in the first quarter soared to a record $10.47 trillion, a 15% year-on-year increase. In the first quarter, global stock markets continued to rise as the market increasingly anticipated the end of the major central banks' tightening monetary policies and a shift to rate cuts, leading to a surge in managed assets.

BlackRock also reported net inflows of $76 billion into long-term investment funds, highlighting the continued attractiveness of its diversified asset management products, but falling short of analysts' average expectation of $85 billion. The inflows included $67 billion into ETFs and $42 billion into fixed-income funds.

Clients also withdrew $19 billion from the company's standalone cash management business and money market funds. Data shows that since the launch of the company's Bitcoin ETF in mid-January, investors have poured $14 billion into it.

BlackRock's total net inflows for the quarter were $57 billion, lower than the $110 billion in the same period last year.

Looking ahead, BlackRock remains optimistic about its growth trajectory and market position in the coming quarters. The company's guidance emphasizes the potential for increased fund inflows due to strong client commitments and continued innovation in financial technology and asset management services.

CEO Larry Fink stated in a declaration, "We believe infrastructure, technology, retirement, and overall investment portfolio solutions have tremendous growth potential, with the broadest and most powerful channels we have ever seen." BlackRock is still advancing its strategic acquisitions, such as planning to acquire Global Infrastructure Partners. The company announced the issuance of $3 billion in bonds to provide partial funding for the planned acquisition of Global Infrastructure Partners, and expects this acquisition to help grow AUM and diversify, while providing new revenue streams through performance fees and expanding customer service.

After the financial report was released, BlackRock rose by about 3% in pre-market trading on Friday. As of Thursday's close, BlackRock's stock price has fallen by 3.2% year-to-date, lagging behind the S&P 500 index's 9% increase