BlackRock sees securities lending revenue decrease
18 January 2019 New York
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BlackRock’s Q4 2018 securities lending, investment advisory and administration fees revenue decreased $118 million from Q4 2017 and $104 million from Q3 2018.
BlackRock noted that alone, securities lending revenue totalled $129 million in the current quarter compared with $150 million in Q4 2017 and $160 million in Q3 2018.
This comes despite the positive impact of organic growth and assets under management in the TCP and Citibanamex transactions.
According to BlackRock, the decrease was driven by the impact of lower markets, previously announced pricing changes to select investment products and lower borrowing demand for securities lending in the current environment.
The report also cited that BlackRock generated $124 billion of full-year total net inflows, which was led by iShares active multi-asset and illiquid alternatives, according to their latest earnings release.
Meanwhile, there was a 4 percent increase in full-year revenue driven by growth in base fees and technology services revenue, partially offset by lower performance fees, BlackRock revealed.
Additionally, they reported growth of 4 percent in full-year operating income (5 percent as adjusted).
As well as this, BlackRock’s report revealed that $3.6 billion was returned to shareholders in 2018, including $1.7 billion of full-year share repurchases.
They also recorded a record $81 billion of quarterly iShares inflows, of this BlackRock said that this reflects market leadership in high-growth exchange-traded funds (ETF) sector.
Laurence D. Fink, chairman and CEO, said: “BlackRock’s scale and strategic positioning allowed us to deliver organic growth, revenue growth, and operating leverage in 2018, while simultaneously investing in our highest growth opportunities and returning $3.6 billion in capital to shareholders. The benefits of the investments we have made to build the most diversified global asset management and technology services firm in the world are clearer today than at any point in our history.”
Fink added: “BlackRock is well positioned to deliver the holistic portfolio solutions, technology services and strategic counsel that clients increasingly are seeking, especially in the face of meaningful headwinds for the asset management industry. We will continue to invest in our platform to ensure BlackRock is even better positioned to serve clients and consistently deliver long-term value to shareholders in the years ahead.”
BlackRock noted that alone, securities lending revenue totalled $129 million in the current quarter compared with $150 million in Q4 2017 and $160 million in Q3 2018.
This comes despite the positive impact of organic growth and assets under management in the TCP and Citibanamex transactions.
According to BlackRock, the decrease was driven by the impact of lower markets, previously announced pricing changes to select investment products and lower borrowing demand for securities lending in the current environment.
The report also cited that BlackRock generated $124 billion of full-year total net inflows, which was led by iShares active multi-asset and illiquid alternatives, according to their latest earnings release.
Meanwhile, there was a 4 percent increase in full-year revenue driven by growth in base fees and technology services revenue, partially offset by lower performance fees, BlackRock revealed.
Additionally, they reported growth of 4 percent in full-year operating income (5 percent as adjusted).
As well as this, BlackRock’s report revealed that $3.6 billion was returned to shareholders in 2018, including $1.7 billion of full-year share repurchases.
They also recorded a record $81 billion of quarterly iShares inflows, of this BlackRock said that this reflects market leadership in high-growth exchange-traded funds (ETF) sector.
Laurence D. Fink, chairman and CEO, said: “BlackRock’s scale and strategic positioning allowed us to deliver organic growth, revenue growth, and operating leverage in 2018, while simultaneously investing in our highest growth opportunities and returning $3.6 billion in capital to shareholders. The benefits of the investments we have made to build the most diversified global asset management and technology services firm in the world are clearer today than at any point in our history.”
Fink added: “BlackRock is well positioned to deliver the holistic portfolio solutions, technology services and strategic counsel that clients increasingly are seeking, especially in the face of meaningful headwinds for the asset management industry. We will continue to invest in our platform to ensure BlackRock is even better positioned to serve clients and consistently deliver long-term value to shareholders in the years ahead.”
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