BlackRock sec lending full-year revenues down for 2021, AuM tops US$10 trillion
18 January 2022 US
Image: AdobeStock/ MichaelVi
BlackRock’s securities lending revenue generated during the fourth quarter has grown year-on-year, rising to US$136 million for Q4 21 from US$131 million in Q4 20.
However, the US-headquartered asset manager has seen its securities lending revenues contract quarter-on-quarter, falling 11 per cent from the US$152 million generated during Q3 21.
For the 12 months of 2021, securities lending revenue fell 15 per cent YoY to US$555 million.
More broadly, BlackRock had a strong quarter from an asset gathering perspective, recording US$212 billion in quarterly total net inflows.
This strength was replicated over the 12 months of 2021, with the fund manager generating US$540 billion of full year total net inflows. This reflects 6 per cent organic asset growth and 11 per cent in organic fee growth, powered by record net money flows into active strategies and ETFs.
Buoyed by these trends, BlackRock’s assets under management have grown by 15 per cent YoY to US$10.01 trillion.
Over the 12 months, BlackRock delivered a 20 per cent increase in full year revenue, which rose to US$19.37 billion, based on record organic growth, record performance fee income and a continued rise in technology revenue (which climbed 13 per cent YoY to US$1.28 billion for 2021), particularly driven by its Aladdin funds platform.
Net income attributable to BlackRock increased from US$4.93 billion in 2020 to US$5.90 billion for 2021, a 20 per cent rise year-on-year.
BlackRock chairman and CEO Larry Fink comments: “BlackRock delivered the strongest organic growth in our history, even as our assets under management reached new highs. We generated US$540 billion of net inflows in 2021, including an industry leading US$267 billion of active net inflows.
“Our record results across each of our strategic priorities demonstrate the benefits of continually investing in our platform over years ahead of our clients’ needs and the tireless commitment of our employees.
“Our strategy is resonating — we’re building deeper partnerships with our clients and other stakeholders, and delivering durable returns for our shareholders.”
However, the US-headquartered asset manager has seen its securities lending revenues contract quarter-on-quarter, falling 11 per cent from the US$152 million generated during Q3 21.
For the 12 months of 2021, securities lending revenue fell 15 per cent YoY to US$555 million.
More broadly, BlackRock had a strong quarter from an asset gathering perspective, recording US$212 billion in quarterly total net inflows.
This strength was replicated over the 12 months of 2021, with the fund manager generating US$540 billion of full year total net inflows. This reflects 6 per cent organic asset growth and 11 per cent in organic fee growth, powered by record net money flows into active strategies and ETFs.
Buoyed by these trends, BlackRock’s assets under management have grown by 15 per cent YoY to US$10.01 trillion.
Over the 12 months, BlackRock delivered a 20 per cent increase in full year revenue, which rose to US$19.37 billion, based on record organic growth, record performance fee income and a continued rise in technology revenue (which climbed 13 per cent YoY to US$1.28 billion for 2021), particularly driven by its Aladdin funds platform.
Net income attributable to BlackRock increased from US$4.93 billion in 2020 to US$5.90 billion for 2021, a 20 per cent rise year-on-year.
BlackRock chairman and CEO Larry Fink comments: “BlackRock delivered the strongest organic growth in our history, even as our assets under management reached new highs. We generated US$540 billion of net inflows in 2021, including an industry leading US$267 billion of active net inflows.
“Our record results across each of our strategic priorities demonstrate the benefits of continually investing in our platform over years ahead of our clients’ needs and the tireless commitment of our employees.
“Our strategy is resonating — we’re building deeper partnerships with our clients and other stakeholders, and delivering durable returns for our shareholders.”
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