Tags: BlackRock Profit Jumps as Management Fees Surge

BlackRock Profit Jumps as Management Fees Surge

Tuesday, 25 Jan 2011 02:48 PM

BlackRock Inc. said on Tuesday that its fourth-quarter profit more than doubled, topping Wall Street's estimates, as the world's largest asset manager attracted new business and saw money management fees rise.

For the three months ended Dec. 31, BlackRock reported net income of $657 million, or $3.35 per share, compared with a profit of $256 million, or $1.62 per share, in the same quarter a year ago.

The New York- based company reported an adjusted profit of $3.42 per share. On that basis, analysts surveyed by FactSet had expected a profit of $2.98 per share, on average.

Shares of BlackRock rose $3.72, or about 1.9 percent, to $197.30 in midday trading. The stock has traded in a 52-week range of $138.42 to $231.13.

Revenue jumped 61 percent to $2.49 billion from $1.54 billion in the same quarter a year ago. That increase was driven largely by a $697 million revenue increase from investment advisory services, administration fees and securities lending.

Assets under management totaled $3.56 trillion as of Dec. 31, up 6 percent from a year earlier.

Much of that gain was the result of rising prices for stocks and other assets. But BlackRock also said net new investments totaling $23.9 billion flowed in from clients in the quarter. BlackRock's iShares exchange-trade business, part of Barclays Global Investors, which BlackRock acquired in 2009, drew a net $13.4 billion in investor cash.

Performance fees that BlackRock's money managers earned for meeting certain investment return targets rose to $326 million in the fourth quarter compared with $125 million in the same quarter a year earlier.

Expenses rose 34 percent to $1.55 billion from $1.16 billion.

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