Lightning fails to strike twice for BlackRock’s SBL revenue
13 October 2020 New York
Image: Production_Perig/adobe.stock.com
BlackRock has reported its lowest quarterly securities lending revenue since Q3 2019, following the recording-breaking revenue it recorded in Q2.
Securities lending revenue hit $153 million in Q3, up from $150 million in the comparable period in 2019 but down from the $210 million achieved in the prior three months.
The asset manager says the month-over-month (MoM) drop off primarily reflected lower assets spreads.
BlackRock also reports its securities lending revenue alongside those from investment advisory, administration fees.
This group of services reported a year-over-year (YoY) revenue increase of $245 million, reaching $3.2 billion as well as a $259 million increase MoM.
The YoY uptick was primarily driven by the positive impact of market beta and foreign exchange movements on average assets under management (AUM) and organic growth, and the effect of one additional day in the quarter, partially offset by lower securities lending revenue, says BlackRock.
Meanwhile, the MoM growth was similarly primarily attributed to the positive impact of market beta and foreign exchange movements on average AUM and organic growth, and the effect of one additional day in the quarter, but again partially offset by lower securities lending revenue.
BlackRock’s figure sits in the context of the global lender-to-broker revenue suffering a 17 percent YoY decrease from the $2.13 billion generated for lenders in Q3 2019, according to DataLend.
Year-to-date, lender-to-broker revenue has totalled $5.67 billion, a 14.7 percent decrease over the $6.65 billion generated for lenders in the first three quarters of 2019.
Securities lending revenue hit $153 million in Q3, up from $150 million in the comparable period in 2019 but down from the $210 million achieved in the prior three months.
The asset manager says the month-over-month (MoM) drop off primarily reflected lower assets spreads.
BlackRock also reports its securities lending revenue alongside those from investment advisory, administration fees.
This group of services reported a year-over-year (YoY) revenue increase of $245 million, reaching $3.2 billion as well as a $259 million increase MoM.
The YoY uptick was primarily driven by the positive impact of market beta and foreign exchange movements on average assets under management (AUM) and organic growth, and the effect of one additional day in the quarter, partially offset by lower securities lending revenue, says BlackRock.
Meanwhile, the MoM growth was similarly primarily attributed to the positive impact of market beta and foreign exchange movements on average AUM and organic growth, and the effect of one additional day in the quarter, but again partially offset by lower securities lending revenue.
BlackRock’s figure sits in the context of the global lender-to-broker revenue suffering a 17 percent YoY decrease from the $2.13 billion generated for lenders in Q3 2019, according to DataLend.
Year-to-date, lender-to-broker revenue has totalled $5.67 billion, a 14.7 percent decrease over the $6.65 billion generated for lenders in the first three quarters of 2019.
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