BlackRock sees record-breaking securities lending revenue
20 July 2020 New York
Image: Shutterstock.com
BlackRock has recorded its highest ever quarterly securities lending revenue, which builds upon its strong start to the year.
Securities lending earnings hit $210 million in Q2, an increase of $52 million from BlackRock’s above-average Q1 haul.
The second quarter’s year-on-year revenue increased by $60 million.
The asset manager says the uptick primarily reflects higher asset spreads and average balances of securities on loan.
Before its latest report, BlackRock’s highest quarterly revenue was $183 million, which was achieved in Q2 2018.
Elsewhere, BlackRock also reports its lending business performance alongside the revenue from investment advisory, administration fees.
Overall, revenue from the cluster of services increased $63 million from the second quarter of 2019, which, BlackRock says, was primarily driven by “organic growth and higher securities lending revenue, partially offset by the negative impact of equity beta and foreign exchange movements on average assets under management (AUM) and strategic pricing changes to certain products”.
Meanwhile, Q2 revenue was down by $89 million from the prior quarter, due to the “impact of first-quarter global market declines and foreign exchange movements on average AUM, partially offset by higher securities lending revenue and organic growth”.
Securities lending earnings hit $210 million in Q2, an increase of $52 million from BlackRock’s above-average Q1 haul.
The second quarter’s year-on-year revenue increased by $60 million.
The asset manager says the uptick primarily reflects higher asset spreads and average balances of securities on loan.
Before its latest report, BlackRock’s highest quarterly revenue was $183 million, which was achieved in Q2 2018.
Elsewhere, BlackRock also reports its lending business performance alongside the revenue from investment advisory, administration fees.
Overall, revenue from the cluster of services increased $63 million from the second quarter of 2019, which, BlackRock says, was primarily driven by “organic growth and higher securities lending revenue, partially offset by the negative impact of equity beta and foreign exchange movements on average assets under management (AUM) and strategic pricing changes to certain products”.
Meanwhile, Q2 revenue was down by $89 million from the prior quarter, due to the “impact of first-quarter global market declines and foreign exchange movements on average AUM, partially offset by higher securities lending revenue and organic growth”.
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