BlackRock achieved its highest full-year earnings from its securities lending programme since at least 2015, despite suffering its lowest quarterly returns in half a decade in Q4.
Securities lending revenue hit $131 million in Q4, down 22.5 per cent from $169 million returns during the same period in 2019, BlackRock data shows.
The asset manager put the year-on-year result down to lower lending spreads, partially offset by higher average balances of securities on loan.
The final quarter of the year has historically brought softer lending revenues for BlackRock and the nearest comparable period for results was Q4 2015 when it brought in $137 million.
For 2020, BlackRock’s best results came in Q2 when it recorded a record-breaking $210 million primarily due to improved spreads and strong on-loan balances.
For 2020, the YoY earnings drop-off was a key trend across the market with global securities lending revenue decreasing 7 per cent to sit at $9.3 billion.
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