Get All Access for FREEMarket News & Research,
Live Transcripts & Audio,
and a whole lot more…
$BLK, which benefited in 4Q17 from the $1.2Bil of net tax benefit from the recent tax reform, said that the reduction in the tax rate will increase the asset manager's after cash flow. BlackRock added that this increased cash flow from the tax reforms will be used in share buybacks and paying dividends, and also for investing in new products.
Assets under management of $BLK transcends $6 trillion mark at the end of 4Q17, helped by the strong market conditions. Revenue jumped 20% to $3.469Bil, while profit rose more than 100% to $2.304Bil or $14.07 per share on a GAAP basis, reflecting the $1.2Bil of net tax benefit related to the Tax Cuts and Jobs Act. Adjusted EPS was up 21% to $6.24.
$BLK's iShares inflows grew 19% organically to $246Bil in 2017 over 2016's $140Bil. Global AUM of iShares grew to $1.754 trillion at 2017-end from $1.3 trillion at 2016-end. Global investors drove record growth in US iShares. BlackRock projects that global ETF market will more than double in AUM by 2022.
In an undisclosed deal, $BLK is set to acquire asset management business of Mexico-based Citibanamex, a subsidiary of $C. This deal involves about $31Bil in assets under management of Citibanamex. This transaction, which is expected to close in 2H18, will not have any material impact on the financials of BlackRock or Citigroup.
$BLK said that there is no pressure in U.S. related to MiFiD II (Markets in Financial Instruments Directive II - EU's regulatory reforms for financial markets). BlackRock added that this is a new opportunity for it and worried that MiFID II will impact small cap companies. There might be negative outcomes if not monitored properly, $BLK said.
$BLK's revenue swelled by 14% YonY to $3.23Bil in 3Q17, helped by growth in the base fees and performance fees. Assets under management at the quarter end hiked by 17% to just shy of $6 trillion, aided by the strong growth in retail, iShares ETFs and institutional clients.
$BLK, whose stock price rose 22% from the end of 2016, reported strong results for 3Q17, helped by the better equity market conditions. Net income rose 8% to $947MM or $5.78 per share. Net inflows hit $96Bil compared to $70Bil a year ago. However, the world's largest asset manager was hurt by the expenses, which rose 13% to $1.84Bil in 3Q17.
$BLK closes the acquisition of Cachematrix, which it agreed to acquire a month back. Cachematrix provides cash management solutions for banks and their corporate clients. This transaction will help BlackRock to strengthen its services in the cash management space.
The world's largest asset manager $BLK's profit rose 8.6% to $857MM in 2Q17 as more investors invested in the company's iShares exchange-traded funds and also aided by the higher fees. Diluted EPS climbed 10.3% to $5.22 and on adjusted basis it was up 9.6% to $5.24 in the recently ended quarter. Revenue rose 5.7% to $2.97Bil.
$BLK, whose stock price spiked 15% from the beginning of this year, reported that its assets under management was brighter by 16% year on year to $5.69 trillion in 2Q17. BlackRock's CEO Laurence Fink said that the long-term net inflows of $94Bil in the quarter were positive across all client and product types, and investment styles.
On investment activities, $BLK continues to make investments in the technologies like artificial intelligence and machine learning. The firm believes technology creates efficiency and help maintain strong margins. Technology advancements made in the Aladdin related to dealing with custodial banks will save large sums of money, said the company.
Building on record total net inflows of $202Bil in 2016, $BLK began 2017 by repositioning active equity platform and investing in business for future growth. Going forward, $BLK will continue to transform change into opportunity, using advantaged market position to create better financial futures for clients and drive long-term growth.