BlackRock: Securities lending revenues up and down
17 July 2018 London
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BlackRock increased securities lending revenue in Q2 2018, according to its most recent set of results.
Securities lending revenue rose to $183 million in the quarter, compared with $156 million in Q2 2017.
BlackRock reported that in the broader category that includes investment advisory, administration fees and securities lending, revenue increased by $277 million from Q2 last year.
This reflected the impact of higher markets and organic growth on average assets under management (AUM), partially offset by previously announced pricing changes to select investment products.
Revenue in this category, however, of $2,944 million in the second quarter, compared with $2,947 million in the first quarter of this year.
BlackRock said this fall reflected lower average AUM, including the impact of foreign exchange movements, partially offset by the effect of one additional day in the current quarter and seasonally higher securities lending revenue.
Performance fees increased $43 million from Q2 2017, primarily reflecting improved performance in long-only equity and single strategy hedge fund products.
It added that performance fees were up $21 million on Q1 2018. This primarily reflected improved performance in long-only equity products.
Laurence Fink, chairman and CEO of BlackRock, said of the overall results: “BlackRock delivered strong financial results in the second quarter, as revenue increased 11 percent, operating income increased 16 percent and earnings per share increased 28 percent year-over-year.”
He added: “Our diverse global platform generated $20 billion of total net inflows in the quarter and $276 billion over the last twelve months. Secular trends supportive of BlackRock’s future growth continue, especially in technology, including Aladdin [an operating system for investment managers] and digital wealth, alternatives and iShares.”
“We have seen markets like these before, and BlackRock’s product breadth, unparalleled portfolio construction capabilities, digital tools and technology uniquely position us to deliver long- term value to clients and shareholders.”
Securities lending revenue rose to $183 million in the quarter, compared with $156 million in Q2 2017.
BlackRock reported that in the broader category that includes investment advisory, administration fees and securities lending, revenue increased by $277 million from Q2 last year.
This reflected the impact of higher markets and organic growth on average assets under management (AUM), partially offset by previously announced pricing changes to select investment products.
Revenue in this category, however, of $2,944 million in the second quarter, compared with $2,947 million in the first quarter of this year.
BlackRock said this fall reflected lower average AUM, including the impact of foreign exchange movements, partially offset by the effect of one additional day in the current quarter and seasonally higher securities lending revenue.
Performance fees increased $43 million from Q2 2017, primarily reflecting improved performance in long-only equity and single strategy hedge fund products.
It added that performance fees were up $21 million on Q1 2018. This primarily reflected improved performance in long-only equity products.
Laurence Fink, chairman and CEO of BlackRock, said of the overall results: “BlackRock delivered strong financial results in the second quarter, as revenue increased 11 percent, operating income increased 16 percent and earnings per share increased 28 percent year-over-year.”
He added: “Our diverse global platform generated $20 billion of total net inflows in the quarter and $276 billion over the last twelve months. Secular trends supportive of BlackRock’s future growth continue, especially in technology, including Aladdin [an operating system for investment managers] and digital wealth, alternatives and iShares.”
“We have seen markets like these before, and BlackRock’s product breadth, unparalleled portfolio construction capabilities, digital tools and technology uniquely position us to deliver long- term value to clients and shareholders.”
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