UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 15, 2025
BLACKROCK, INC. |
(Exact name of registrant as specified in its charter) |
DELAWARE (State or other jurisdiction of incorporation) |
001-42297 (Commission File Number) |
99-1116001 (IRS Employer Identification No.) |
50 Hudson Yards, New York, New York |
10001 |
(Address of principal executive offices) |
(Zip Code) |
Registrant’s telephone number, including area code: (212) 810-5800
|
(Former name or former address, if changed since last report.) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
|
Trading Symbol(s) |
|
Name of each exchange on which registered |
Common Stock, $.01 par value |
|
BLK |
|
New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition
On January 15, 2025, BlackRock, Inc. (the “Company”) reported results of operations for the three months and year ended December 31, 2024. A copy of the earnings release issued by the Company is attached as Exhibit 99.1 to this Form 8-K.
Item 7.01. Regulation FD Disclosure
On January 15, 2025, the Company will hold an investor conference call and webcast to discuss the Company’s earnings results for the three months and year ended December 31, 2024. A copy of supplemental materials used during the conference call and webcast is furnished as Exhibit 99.2 to this Form 8-K.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits
99.1 |
Earnings release dated January 15, 2025 issued by the Company |
99.2 |
|
104 |
Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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BlackRock, Inc. |
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(Registrant) |
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Date: January 15, 2025 |
By: |
/s/ Martin S. Small |
|
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Martin S. Small |
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Senior Managing Director and |
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Chief Financial Officer |
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Exhibit 99.1
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INVESTOR RELATIONS: Caroline Rodda 212.810.3442 |
MEDIA RELATIONS: Patrick Scanlan 212.810.3622 |
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BlackRock Reports Full Year 2024 Diluted EPS of $42.01, or $43.61 as adjusted Fourth Quarter 2024 Diluted EPS of $10.63, or $11.93 as adjusted |
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New York, January 15, 2025 – BlackRock, Inc. (NYSE: BLK) today reported financial results for the three months and year ended December 31, 2024. |
$11.6 trillion in AUM following a record $641 billion of full year net inflows, including $281 billion in the fourth quarter 14% increase in full year revenue driven by the positive impact of markets on average AUM, organic base fee growth, and fees on AUM acquired in the GIP Transaction, as well as higher performance fees and technology service revenue 21% increase in full year operating income (23% as adjusted) 15% increase in full year diluted EPS also reflects lower nonoperating income and a higher effective tax rate in the current year $4.7 billion returned to shareholders in 2024, including $1.6 billion of share repurchases Previously announced agreement to acquire HPS Investment Partners to create an integrated private credit franchise with approximately $220 billion in pro-forma client assets |
|
Laurence D. Fink, Chairman and CEO: “Clients entrusted BlackRock with a record $641 billion of net inflows in 2024, including $281 billion in the fourth quarter for two consecutive record flows quarters. 2024 was also a milestone year for strategic acquisitions grounded in client service, technology and scale. Our closing of GIP and planned acquisitions of HPS and Preqin are expected to significantly scale and enhance our private markets investment and data capabilities. “For many companies, periods of M&A contribute to a pause in client engagement. At BlackRock, clients are instead embracing and rewarding our strategy. Client activity accelerated into the fourth quarter, resulting in 7% organic base fee growth and 12% technology services ACV growth. Our operating model delivered exceptional performance in a year of meaningful change. We crossed $20 billion of annual revenue, up 14% from 2023. As adjusted operating income grew by 23%, and our industry-leading margin of 44.5% was up 280 basis points. “Our record organic growth and financial results do not yet reflect the full integration or pending acquisitions of the high-growth businesses of GIP, HPS and Preqin. And we’ve steadily made organic investments ahead of structural trends that we expect to drive outsized growth in the years ahead. “BlackRock’s world-class talent is central to our significant growth and sustained performance. We have a longstanding, deliberate strategy of systematically elevating our strongest leaders around the world. We’re excited to again have a number of them taking on expanded roles this year. BlackRock’s leadership team alongside top talent from GIP, HPS and Preqin position us to serve our clients with excellence and seize the opportunities ahead of us. “In the 25 years since our IPO, BlackRock has delivered a 21% compounded annual total return for our shareholders, compared to 8% in the S&P 500. BlackRock enters 2025 with more growth and upside potential than ever. This is just the beginning.” |
FINANCIAL RESULTS |
|
|
NET FLOW HIGHLIGHTS(1) |
|
||||||||||||||||||||||
(in millions, |
Q4 |
|
|
Q4 |
|
|
Full Year |
|
|
|
|
|
Q4 |
|
|
Full Year |
|
|||||||||
except per share data) |
2024 |
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2023 |
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|
2024 |
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|
2023 |
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(in billions) |
2024 |
|
|
2024 |
|
||||||||
AUM |
$ |
11,551,251 |
|
|
$ |
10,008,995 |
|
|
$ |
11,551,251 |
|
|
$ |
10,008,995 |
|
|
Long-term net flows: |
$ |
201 |
|
|
$ |
489 |
|
||
% change |
|
15 |
% |
|
|
|
|
|
15 |
% |
|
|
|
|
|
|
|
|
|
|
|
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||||
Average AUM |
$ |
11,555,434 |
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|
$ |
9,384,929 |
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|
$ |
10,804,007 |
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|
$ |
9,220,700 |
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By region: |
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|
|
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||||
% change |
|
23 |
% |
|
|
|
|
|
17 |
% |
|
|
|
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Americas |
$ |
116 |
|
|
$ |
317 |
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|||
Total net flows |
$ |
281,416 |
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|
$ |
95,647 |
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|
$ |
641,351 |
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|
$ |
288,695 |
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EMEA |
|
74 |
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|
|
149 |
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|
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|
APAC |
|
11 |
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|
23 |
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|||||
GAAP basis: |
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|
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||||||
Revenue |
$ |
5,677 |
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|
$ |
4,631 |
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|
$ |
20,407 |
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|
$ |
17,859 |
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By client type: |
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||||
% change |
|
23 |
% |
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|
|
|
14 |
% |
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|
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|
|
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||||
Operating income |
$ |
2,075 |
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|
$ |
1,585 |
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|
$ |
7,574 |
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|
$ |
6,275 |
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Retail: |
$ |
5 |
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|
$ |
24 |
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|
% change |
|
31 |
% |
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|
|
|
|
21 |
% |
|
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US |
|
3 |
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|
19 |
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||
Operating margin |
|
36.6 |
% |
|
|
34.2 |
% |
|
|
37.1 |
% |
|
|
35.1 |
% |
|
|
|
International |
|
2 |
|
|
|
5 |
|
Net income(1) |
$ |
1,670 |
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|
$ |
1,375 |
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|
$ |
6,369 |
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|
$ |
5,502 |
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|
|
|
|
|
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|
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||
% change |
|
21 |
% |
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|
|
|
|
16 |
% |
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|
|
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|
ETFs: |
$ |
143 |
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|
$ |
390 |
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|||
Diluted EPS |
$ |
10.63 |
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|
$ |
9.15 |
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$ |
42.01 |
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$ |
36.51 |
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Core equity |
|
75 |
|
|
|
175 |
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% change |
|
16 |
% |
|
|
|
|
|
15 |
% |
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Strategic |
|
18 |
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|
113 |
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Weighted-average |
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Cryptocurrency |
|
18 |
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|
41 |
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||||
diluted shares |
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157.0 |
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150.2 |
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|
151.6 |
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|
150.7 |
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Other precision |
|
32 |
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|
|
61 |
|
% change |
|
5 |
% |
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|
|
|
1 |
% |
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|
|
|
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||||
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Institutional: |
$ |
53 |
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|
$ |
74 |
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|||||
As Adjusted(2): |
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|
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Active |
|
25 |
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|
|
64 |
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||||
Operating income |
$ |
2,326 |
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|
$ |
1,716 |
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|
$ |
8,110 |
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|
$ |
6,593 |
|
|
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Index |
|
28 |
|
|
|
9 |
|
% change |
|
36 |
% |
|
|
|
|
|
23 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating margin |
|
45.5 |
% |
|
|
41.6 |
% |
|
|
44.5 |
% |
|
|
41.7 |
% |
|
|
|
|
|
|
|
|
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||
Net income(1) |
$ |
1,874 |
|
|
$ |
1,451 |
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|
$ |
6,612 |
|
|
$ |
5,692 |
|
|
Cash management net flows |
$ |
81 |
|
|
$ |
153 |
|
||
% change |
|
29 |
% |
|
|
|
|
|
16 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Diluted EPS |
$ |
11.93 |
|
|
$ |
9.66 |
|
|
$ |
43.61 |
|
|
$ |
37.77 |
|
|
|
|
|
|
|
|
|
|
||
% change |
|
23 |
% |
|
|
|
|
|
15 |
% |
|
|
|
|
Total net flows |
$ |
281 |
|
|
$ |
641 |
|
||||
_________________________ |
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_________________________ |
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||||||||||||||||
(1) Net income represents net income attributable to BlackRock, Inc. |
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(1) Totals may not add due to rounding. |
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1
BUSINESS RESULTS
|
|
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|
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|
Q4 2024 |
|
|||||
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Q4 2024 |
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|
Base fees(1) |
|
|||||
|
|
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Base fees(1) |
|
December 31, 2024 |
|
and securities |
|
|||||
|
Q4 2024 |
|
December 31, 2024 |
|
and securities |
|
AUM |
|
lending revenue |
|
|||||
(in millions), (unaudited) |
Net flows |
|
AUM |
|
lending revenue |
|
% of Total |
|
% of Total |
|
|||||
RESULTS BY CLIENT TYPE |
|
|
|
|
|
|
|
|
|
|
|||||
Retail |
$ |
4,650 |
|
$ |
1,015,827 |
|
$ |
1,105 |
|
|
9 |
% |
|
25 |
% |
ETFs |
|
142,641 |
|
|
4,230,375 |
|
|
1,815 |
|
|
37 |
% |
|
41 |
% |
Institutional: |
|
|
|
|
|
|
|
|
|
|
|||||
Active |
|
25,126 |
|
|
2,136,749 |
|
|
962 |
|
|
18 |
% |
|
22 |
% |
Index |
|
28,251 |
|
|
3,247,637 |
|
|
242 |
|
|
28 |
% |
|
5 |
% |
Total institutional |
|
53,377 |
|
|
5,384,386 |
|
|
1,204 |
|
|
46 |
% |
|
27 |
% |
Long-term |
|
200,668 |
|
|
10,630,588 |
|
|
4,124 |
|
|
92 |
% |
|
93 |
% |
Cash management |
|
80,748 |
|
|
920,663 |
|
|
293 |
|
|
8 |
% |
|
7 |
% |
Total |
$ |
281,416 |
|
$ |
11,551,251 |
|
$ |
4,417 |
|
|
100 |
% |
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|||||
RESULTS BY INVESTMENT STYLE |
|
|
|
|
|
|
|
|
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|
|||||
Active |
$ |
22,830 |
|
$ |
2,870,656 |
|
$ |
1,991 |
|
|
25 |
% |
|
45 |
% |
Index and ETFs |
|
177,838 |
|
|
7,759,932 |
|
|
2,133 |
|
|
67 |
% |
|
48 |
% |
Long-term |
|
200,668 |
|
|
10,630,588 |
|
|
4,124 |
|
|
92 |
% |
|
93 |
% |
Cash management |
|
80,748 |
|
|
920,663 |
|
|
293 |
|
|
8 |
% |
|
7 |
% |
Total |
$ |
281,416 |
|
$ |
11,551,251 |
|
$ |
4,417 |
|
|
100 |
% |
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|||||
RESULTS BY PRODUCT TYPE |
|
|
|
|
|
|
|
|
|
|
|||||
Equity |
$ |
126,566 |
|
$ |
6,310,191 |
|
$ |
2,142 |
|
|
55 |
% |
|
48 |
% |
Fixed income |
|
23,784 |
|
|
2,905,669 |
|
|
950 |
|
|
25 |
% |
|
22 |
% |
Multi-asset |
|
24,307 |
|
|
992,921 |
|
|
326 |
|
|
8 |
% |
|
7 |
% |
Alternatives: |
|
|
|
|
|
|
|
|
|
|
|||||
Private markets |
|
4,730 |
|
|
211,974 |
|
|
480 |
|
|
2 |
% |
|
11 |
% |
Liquid alternatives |
|
1,165 |
|
|
76,390 |
|
|
146 |
|
|
1 |
% |
|
3 |
% |
Currency and commodities(2) |
|
20,116 |
|
|
133,443 |
|
|
80 |
|
|
1 |
% |
|
2 |
% |
Total alternatives |
|
26,011 |
|
|
421,807 |
|
|
706 |
|
|
4 |
% |
|
16 |
% |
Long-term |
|
200,668 |
|
|
10,630,588 |
|
|
4,124 |
|
|
92 |
% |
|
93 |
% |
Cash management |
|
80,748 |
|
|
920,663 |
|
|
293 |
|
|
8 |
% |
|
7 |
% |
Total |
$ |
281,416 |
|
$ |
11,551,251 |
|
$ |
4,417 |
|
|
100 |
% |
|
100 |
% |
INVESTMENT PERFORMANCE AT DECEMBER 31, 2024(1)
|
One-year period |
Three-year period |
Five-year period |
Fixed income: |
|
|
|
Actively managed AUM above benchmark or peer median |
|
|
|
Taxable |
69% |
79% |
82% |
Tax-exempt |
69% |
42% |
45% |
Index AUM within or above applicable tolerance |
97% |
99% |
98% |
Equity: |
|
|
|
Actively managed AUM above benchmark or peer median |
|
|
|
Fundamental |
47% |
44% |
64% |
Systematic |
93% |
89% |
93% |
Index AUM within or above applicable tolerance |
94% |
99% |
100% |
TELECONFERENCE, WEBCAST AND PRESENTATION INFORMATION
Chairman and Chief Executive Officer, Laurence D. Fink, President, Robert S. Kapito, and Chief Financial Officer, Martin S. Small, will host a teleconference call for investors and analysts on Wednesday, January 15, 2025 at 7:30 a.m. (Eastern Time). Members of the public who are interested in participating in the teleconference should dial, from the United States, (786) 460-7166, or from outside the United States, (866) 409-1555, shortly before 7:30 a.m. and reference the BlackRock Conference Call (ID Number 6231688). A live, listen-only webcast will also be available via the investor relations section of www.blackrock.com.
The webcast will be available for replay by 10:30 a.m. (Eastern Time) on Wednesday, January 15, 2025. To access the replay of the webcast, please visit the investor relations section of www.blackrock.com.
ABOUT BLACKROCK
BlackRock’s purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable. For additional information on BlackRock, please visit www.blackrock.com/corporate.
2
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION
(in millions, except per share data), (unaudited)
|
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|
|
|
|
|
|
Three Months |
|
|
|
|
|
||||||||
|
Three Months Ended |
|
|
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|
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Ended |
|
|
|
|
|
||||||||
|
December 31, |
|
|
|
|
|
|
September 30, |
|
|
|
|
|
||||||||
|
2024 |
|
|
2023 |
|
|
Change |
|
|
|
2024 |
|
|
Change |
|
|
|||||
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Investment advisory, administration fees and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Investment advisory and administration fees |
$ |
4,256 |
|
|
$ |
3,448 |
|
|
$ |
808 |
|
|
|
$ |
3,881 |
|
|
$ |
375 |
|
|
Securities lending revenue |
|
161 |
|
|
|
157 |
|
|
|
4 |
|
|
|
|
149 |
|
|
|
12 |
|
|
Total investment advisory, administration fees |
|
4,417 |
|
|
|
3,605 |
|
|
|
812 |
|
|
|
|
4,030 |
|
|
|
387 |
|
|
Investment advisory performance fees |
|
451 |
|
|
|
311 |
|
|
|
140 |
|
|
|
|
388 |
|
|
|
63 |
|
|
Technology services revenue |
|
428 |
|
|
|
379 |
|
|
|
49 |
|
|
|
|
403 |
|
|
|
25 |
|
|
Distribution fees |
|
322 |
|
|
|
303 |
|
|
|
19 |
|
|
|
|
323 |
|
|
|
(1 |
) |
|
Advisory and other revenue |
|
59 |
|
|
|
33 |
|
|
|
26 |
|
|
|
|
53 |
|
|
|
6 |
|
|
Total revenue |
|
5,677 |
|
|
|
4,631 |
|
|
|
1,046 |
|
|
|
|
5,197 |
|
|
|
480 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Employee compensation and benefits |
|
1,885 |
|
|
|
1,503 |
|
|
|
382 |
|
|
|
|
1,578 |
|
|
|
307 |
|
|
Sales, asset and account expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Distribution and servicing costs |
|
565 |
|
|
|
502 |
|
|
|
63 |
|
|
|
|
549 |
|
|
|
16 |
|
|
Direct fund expense |
|
389 |
|
|
|
318 |
|
|
|
71 |
|
|
|
|
379 |
|
|
|
10 |
|
|
Sub-advisory and other |
|
42 |
|
|
|
35 |
|
|
|
7 |
|
|
|
|
34 |
|
|
|
8 |
|
|
Total sales, asset and account expense |
|
996 |
|
|
|
855 |
|
|
|
141 |
|
|
|
|
962 |
|
|
|
34 |
|
|
General and administration expense |
|
596 |
|
|
|
589 |
|
|
|
7 |
|
|
|
|
562 |
|
|
|
34 |
|
|
Restructuring charge |
|
- |
|
|
|
61 |
|
|
|
(61 |
) |
|
|
|
- |
|
|
|
- |
|
|
Amortization and impairment of intangible assets |
|
125 |
|
|
|
38 |
|
|
|
87 |
|
|
|
|
89 |
|
|
|
36 |
|
|
Total expense |
|
3,602 |
|
|
|
3,046 |
|
|
|
556 |
|
|
|
|
3,191 |
|
|
|
411 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Operating income |
|
2,075 |
|
|
|
1,585 |
|
|
|
490 |
|
|
|
|
2,006 |
|
|
|
69 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Nonoperating income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net gain (loss) on investments |
|
(18 |
) |
|
|
265 |
|
|
|
(283 |
) |
|
|
|
177 |
|
|
|
(195 |
) |
|
Interest and dividend income |
|
212 |
|
|
|
159 |
|
|
|
53 |
|
|
|
|
236 |
|
|
|
(24 |
) |
|
Interest expense |
|
(166 |
) |
|
|
(82 |
) |
|
|
(84 |
) |
|
|
|
(154 |
) |
|
|
(12 |
) |
|
Total nonoperating income (expense) |
|
28 |
|
|
|
342 |
|
|
|
(314 |
) |
|
|
|
259 |
|
|
|
(231 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Income before income taxes |
|
2,103 |
|
|
|
1,927 |
|
|
|
176 |
|
|
|
|
2,265 |
|
|
|
(162 |
) |
|
Income tax expense |
|
442 |
|
|
|
438 |
|
|
|
4 |
|
|
|
|
574 |
|
|
|
(132 |
) |
|
Net income |
|
1,661 |
|
|
|
1,489 |
|
|
|
172 |
|
|
|
|
1,691 |
|
|
|
(30 |
) |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net income (loss) attributable to noncontrolling |
|
(9 |
) |
|
|
114 |
|
|
|
(123 |
) |
|
|
|
60 |
|
|
|
(69 |
) |
|
Net income attributable to BlackRock, Inc. |
$ |
1,670 |
|
|
$ |
1,375 |
|
|
$ |
295 |
|
|
|
$ |
1,631 |
|
|
$ |
39 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Weighted-average common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Basic |
|
155.0 |
|
|
|
148.7 |
|
|
|
6.3 |
|
|
|
|
148.0 |
|
|
|
6.9 |
|
|
Diluted |
|
157.0 |
|
|
|
150.2 |
|
|
|
6.8 |
|
|
|
|
149.6 |
|
|
|
7.4 |
|
|
Earnings per share attributable to BlackRock, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Basic |
$ |
10.78 |
|
|
$ |
9.25 |
|
|
$ |
1.53 |
|
|
|
$ |
11.02 |
|
|
$ |
(0.24 |
) |
|
Diluted |
$ |
10.63 |
|
|
$ |
9.15 |
|
|
$ |
1.48 |
|
|
|
$ |
10.90 |
|
|
$ |
(0.27 |
) |
|
Cash dividends declared and paid per share |
$ |
5.10 |
|
|
$ |
5.00 |
|
|
$ |
0.10 |
|
|
|
$ |
5.10 |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Supplemental information: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
AUM (end of period) |
$ |
11,551,251 |
|
|
$ |
10,008,995 |
|
|
$ |
1,542,256 |
|
|
|
$ |
11,475,362 |
|
|
$ |
75,889 |
|
|
Shares outstanding (end of period) |
|
154.9 |
|
|
|
148.5 |
|
|
|
6.4 |
|
|
|
|
148.0 |
|
|
|
7.0 |
|
|
GAAP: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Operating margin |
|
36.6 |
% |
|
|
34.2 |
% |
|
|
240 |
|
bps |
|
|
38.6 |
% |
|
|
(200 |
) |
bps |
Effective tax rate |
|
20.9 |
% |
|
|
24.2 |
% |
|
|
(330 |
) |
bps |
|
|
26.0 |
% |
|
|
(510 |
) |
bps |
As adjusted: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Operating income (1) |
$ |
2,326 |
|
|
$ |
1,716 |
|
|
$ |
610 |
|
|
|
$ |
2,128 |
|
|
$ |
198 |
|
|
Operating margin (1) |
|
45.5 |
% |
|
|
41.6 |
% |
|
|
390 |
|
bps |
|
|
45.8 |
% |
|
|
(30 |
) |
bps |
Nonoperating income (expense), less net income |
$ |
39 |
|
|
$ |
199 |
|
|
$ |
(160 |
) |
|
|
$ |
190 |
|
|
$ |
(151 |
) |
|
Net income attributable to BlackRock, Inc. (3) |
$ |
1,874 |
|
|
$ |
1,451 |
|
|
$ |
423 |
|
|
|
$ |
1,715 |
|
|
$ |
159 |
|
|
Diluted earnings attributable to BlackRock, Inc. |
$ |
11.93 |
|
|
$ |
9.66 |
|
|
$ |
2.27 |
|
|
|
$ |
11.46 |
|
|
$ |
0.47 |
|
|
Effective tax rate |
|
20.8 |
% |
|
|
24.2 |
% |
|
|
(340 |
) |
bps |
|
|
26.0 |
% |
|
|
(520 |
) |
bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See pages 10 through 12 for the reconciliation to accounting principles generally accepted in the United States ("GAAP") and notes (1) through (3) to the condensed consolidated statements of income and supplemental information for more information on as adjusted items. Beginning in the first quarter of 2024, BlackRock, Inc. updated the presentation of the Company’s expense line items within the condensed consolidated statements of income by including a new “sales, asset and account expense” income statement caption. Such expense line items have been recast for 2023 to conform to this new presentation. For a recast of 2023 expense line items, see page 12 of Exhibit 99.1 to the Current Report on Form 8-K furnished on April 12, 2024.
3
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION
(in millions, except per share data), (unaudited)
|
|
|
|
|
|
|
|
|
|
|||
|
Year Ended |
|
|
|
|
|
||||||
|
December 31, |
|
|
|
|
|
||||||
|
2024 |
|
|
2023 |
|
|
Change |
|
|
|||
Revenue |
|
|
|
|
|
|
|
|
|
|||
Investment advisory, administration fees and |
|
|
|
|
|
|
|
|
|
|||
Investment advisory and administration fees |
$ |
15,485 |
|
|
$ |
13,724 |
|
|
$ |
1,761 |
|
|
Securities lending revenue |
|
615 |
|
|
|
675 |
|
|
|
(60 |
) |
|
Total investment advisory, administration fees |
|
16,100 |
|
|
|
14,399 |
|
|
|
1,701 |
|
|
Investment advisory performance fees |
|
1,207 |
|
|
|
554 |
|
|
|
653 |
|
|
Technology services revenue |
|
1,603 |
|
|
|
1,485 |
|
|
|
118 |
|
|
Distribution fees |
|
1,273 |
|
|
|
1,262 |
|
|
|
11 |
|
|
Advisory and other revenue |
|
224 |
|
|
|
159 |
|
|
|
65 |
|
|
Total revenue |
|
20,407 |
|
|
|
17,859 |
|
|
|
2,548 |
|
|
|
|
|
|
|
|
|
|
|
|
|||
Expense |
|
|
|
|
|
|
|
|
|
|||
Employee compensation and benefits |
|
6,546 |
|
|
|
5,779 |
|
|
|
767 |
|
|
Sales, asset and account expense: |
|
|
|
|
|
|
|
|
|
|||
Distribution and servicing costs |
|
2,171 |
|
|
|
2,051 |
|
|
|
120 |
|
|
Direct fund expense |
|
1,464 |
|
|
|
1,331 |
|
|
|
133 |
|
|
Sub-advisory and other |
|
140 |
|
|
|
116 |
|
|
|
24 |
|
|
Total sales, asset and account expense |
|
3,775 |
|
|
|
3,498 |
|
|
|
277 |
|
|
General and administration expense |
|
2,221 |
|
|
|
2,095 |
|
|
|
126 |
|
|
Restructuring charge |
|
- |
|
|
|
61 |
|
|
|
(61 |
) |
|
Amortization and impairment of intangible assets |
|
291 |
|
|
|
151 |
|
|
|
140 |
|
|
Total expense |
|
12,833 |
|
|
|
11,584 |
|
|
|
1,249 |
|
|
|
|
|
|
|
|
|
|
|
|
|||
Operating income |
|
7,574 |
|
|
|
6,275 |
|
|
|
1,299 |
|
|
|
|
|
|
|
|
|
|
|
|
|||
Nonoperating income (expense) |
|
|
|
|
|
|
|
|
|
|||
Net gain (loss) on investments |
|
492 |
|
|
|
699 |
|
|
|
(207 |
) |
|
Interest and dividend income |
|
767 |
|
|
|
473 |
|
|
|
294 |
|
|
Interest expense |
|
(538 |
) |
|
|
(292 |
) |
|
|
(246 |
) |
|
Total nonoperating income (expense) |
|
721 |
|
|
|
880 |
|
|
|
(159 |
) |
|
|
|
|
|
|
|
|
|
|
|
|||
Income before income taxes |
|
8,295 |
|
|
|
7,155 |
|
|
|
1,140 |
|
|
Income tax expense |
|
1,783 |
|
|
|
1,479 |
|
|
|
304 |
|
|
Net income |
|
6,512 |
|
|
|
5,676 |
|
|
|
836 |
|
|
Less: |
|
|
|
|
|
|
|
|
|
|||
Net income (loss) attributable to noncontrolling |
|
143 |
|
|
|
174 |
|
|
|
(31 |
) |
|
Net income attributable to BlackRock, Inc. |
$ |
6,369 |
|
|
$ |
5,502 |
|
|
$ |
867 |
|
|
|
|
|
|
|
|
|
|
|
|
|||
Weighted-average common shares outstanding |
|
|
|
|
|
|
|
|
|
|||
Basic |
|
150.0 |
|
|
|
149.3 |
|
|
|
0.7 |
|
|
Diluted |
|
151.6 |
|
|
|
150.7 |
|
|
|
0.9 |
|
|
Earnings per share attributable to BlackRock, Inc. |
|
|
|
|
|
|
|
|
|
|||
Basic |
$ |
42.45 |
|
|
$ |
36.85 |
|
|
$ |
5.60 |
|
|
Diluted |
$ |
42.01 |
|
|
$ |
36.51 |
|
|
$ |
5.50 |
|
|
Cash dividends declared and paid per share |
$ |
20.40 |
|
|
$ |
20.00 |
|
|
$ |
0.40 |
|
|
|
|
|
|
|
|
|
|
|
|
|||
Supplemental information: |
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|||
AUM (end of period) |
$ |
11,551,251 |
|
|
$ |
10,008,995 |
|
|
$ |
1,542,256 |
|
|
Shares outstanding (end of period) |
|
154.9 |
|
|
|
148.5 |
|
|
|
6.4 |
|
|
GAAP: |
|
|
|
|
|
|
|
|
|
|||
Operating margin |
|
37.1 |
% |
|
|
35.1 |
% |
|
|
200 |
|
bps |
Effective tax rate |
|
21.9 |
% |
|
|
21.2 |
% |
|
|
70 |
|
bps |
As adjusted: |
|
|
|
|
|
|
|
|
|
|||
Operating income (1) |
$ |
8,110 |
|
|
$ |
6,593 |
|
|
$ |
1,517 |
|
|
Operating margin (1) |
|
44.5 |
% |
|
|
41.7 |
% |
|
|
280 |
|
bps |
Nonoperating income (expense), less net income |
$ |
533 |
|
|
$ |
648 |
|
|
$ |
(115 |
) |
|
Net income attributable to BlackRock, Inc. (3) |
$ |
6,612 |
|
|
$ |
5,692 |
|
|
$ |
920 |
|
|
Diluted earnings attributable to BlackRock, Inc. |
$ |
43.61 |
|
|
$ |
37.77 |
|
|
$ |
5.84 |
|
|
Effective tax rate |
|
23.5 |
% |
|
|
21.4 |
% |
|
|
210 |
|
bps |
|
|
|
|
|
|
|
|
|
|
See pages 10 through 12 for the reconciliation to GAAP and notes (1) through (3) to the condensed consolidated statements of income and supplemental information for more information on as adjusted items. Beginning in the first quarter of 2024, BlackRock, Inc. updated the presentation of the Company’s expense line items within the condensed consolidated statements of income by including a new “sales, asset and account expense” income statement caption. Such expense line items have been recast for 2023 to conform to this new presentation. For a recast of 2023 expense line items, see page 12 of Exhibit 99.1 to the Current Report on Form 8-K furnished on April 12, 2024.
4
ASSETS UNDER MANAGEMENT
(in millions), (unaudited)
Current Quarter Component Changes by Client Type and Product Type |
|
||||||||||||||||||||||||||
|
|
|
|
Net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
September 30, |
|
|
inflows |
|
|
|
|
|
Market |
|
|
|
|
|
December 31, |
|
|
|
|
|||||||
|
2024 |
|
|
(outflows) |
|
|
Acquisition(1) |
|
|
change |
|
|
FX impact(2) |
|
|
2024 |
|
|
Average AUM(3) |
|
|||||||
Retail: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Equity |
$ |
521,270 |
|
|
$ |
(127 |
) |
|
$ |
- |
|
|
$ |
(7,209 |
) |
|
$ |
(8,816 |
) |
|
$ |
505,118 |
|
|
$ |
514,867 |
|
Fixed income |
|
324,245 |
|
|
|
4,155 |
|
|
|
- |
|
|
|
(4,823 |
) |
|
|
(4,936 |
) |
|
|
318,641 |
|
|
|
321,799 |
|
Multi-asset |
|
154,078 |
|
|
|
(424 |
) |
|
|
- |
|
|
|
(1,909 |
) |
|
|
(767 |
) |
|
|
150,978 |
|
|
|
152,157 |
|
Alternatives |
|
41,608 |
|
|
|
1,046 |
|
|
|
- |
|
|
|
(1,009 |
) |
|
|
(555 |
) |
|
|
41,090 |
|
|
|
41,243 |
|
Retail subtotal |
|
1,041,201 |
|
|
|
4,650 |
|
|
|
- |
|
|
|
(14,950 |
) |
|
|
(15,074 |
) |
|
|
1,015,827 |
|
|
|
1,030,066 |
|
ETFs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Equity |
|
3,061,840 |
|
|
|
110,601 |
|
|
|
- |
|
|
|
(43,614 |
) |
|
|
(22,429 |
) |
|
|
3,106,398 |
|
|
|
3,090,667 |
|
Fixed income |
|
1,019,176 |
|
|
|
11,834 |
|
|
|
- |
|
|
|
(34,956 |
) |
|
|
(10,402 |
) |
|
|
985,652 |
|
|
|
1,005,156 |
|
Multi-asset |
|
10,036 |
|
|
|
1,070 |
|
|
|
- |
|
|
|
(153 |
) |
|
|
(219 |
) |
|
|
10,734 |
|
|
|
10,281 |
|
Alternatives |
|
97,283 |
|
|
|
19,136 |
|
|
|
- |
|
|
|
11,332 |
|
|
|
(160 |
) |
|
|
127,591 |
|
|
|
115,012 |
|
ETFs subtotal |
|
4,188,335 |
|
|
|
142,641 |
|
|
|
- |
|
|
|
(67,391 |
) |
|
|
(33,210 |
) |
|
|
4,230,375 |
|
|
|
4,221,116 |
|
Institutional: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Active: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Equity |
|
225,361 |
|
|
|
(2,050 |
) |
|
|
- |
|
|
|
2,432 |
|
|
|
(6,895 |
) |
|
|
218,848 |
|
|
|
222,045 |
|
Fixed income |
|
873,385 |
|
|
|
(1,509 |
) |
|
|
- |
|
|
|
(18,258 |
) |
|
|
(13,290 |
) |
|
|
840,328 |
|
|
|
851,910 |
|
Multi-asset |
|
833,975 |
|
|
|
23,844 |
|
|
|
- |
|
|
|
(8,141 |
) |
|
|
(21,639 |
) |
|
|
828,039 |
|
|
|
835,579 |
|
Alternatives |
|
178,223 |
|
|
|
4,841 |
|
|
|
69,875 |
|
|
|
448 |
|
|
|
(3,853 |
) |
|
|
249,534 |
|
|
|
230,800 |
|
Active subtotal |
|
2,110,944 |
|
|
|
25,126 |
|
|
|
69,875 |
|
|
|
(23,519 |
) |
|
|
(45,677 |
) |
|
|
2,136,749 |
|
|
|
2,140,334 |
|
Index: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Equity |
|
2,472,528 |
|
|
|
18,142 |
|
|
|
- |
|
|
|
46,933 |
|
|
|
(57,776 |
) |
|
|
2,479,827 |
|
|
|
2,493,289 |
|
Fixed income |
|
806,888 |
|
|
|
9,304 |
|
|
|
- |
|
|
|
(14,389 |
) |
|
|
(40,755 |
) |
|
|
761,048 |
|
|
|
780,330 |
|
Multi-asset |
|
3,426 |
|
|
|
(183 |
) |
|
|
- |
|
|
|
(1 |
) |
|
|
(72 |
) |
|
|
3,170 |
|
|
|
3,325 |
|
Alternatives |
|
2,653 |
|
|
|
988 |
|
|
|
- |
|
|
|
19 |
|
|
|
(68 |
) |
|
|
3,592 |
|
|
|
3,149 |
|
Index subtotal |
|
3,285,495 |
|
|
|
28,251 |
|
|
|
- |
|
|
|
32,562 |
|
|
|
(98,671 |
) |
|
|
3,247,637 |
|
|
|
3,280,093 |
|
Institutional subtotal |
|
5,396,439 |
|
|
|
53,377 |
|
|
|
69,875 |
|
|
|
9,043 |
|
|
|
(144,348 |
) |
|
|
5,384,386 |
|
|
|
5,420,427 |
|
Long-term |
|
10,625,975 |
|
|
|
200,668 |
|
|
|
69,875 |
|
|
|
(73,298 |
) |
|
|
(192,632 |
) |
|
|
10,630,588 |
|
|
|
10,671,609 |
|
Cash management |
|
849,387 |
|
|
|
80,748 |
|
|
|
- |
|
|
|
2,521 |
|
|
|
(11,993 |
) |
|
|
920,663 |
|
|
|
883,825 |
|
Total |
$ |
11,475,362 |
|
|
$ |
281,416 |
|
|
$ |
69,875 |
|
|
$ |
(70,777 |
) |
|
$ |
(204,625 |
) |
|
$ |
11,551,251 |
|
|
$ |
11,555,434 |
|
Current Quarter Component Changes by Investment Style and Product Type (Long-Term) |
|
||||||||||||||||||||||||||
|
|
|
|
Net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
September 30, |
|
|
inflows |
|
|
|
|
|
Market |
|
|
|
|
|
December 31, |
|
|
|
|
|||||||
|
2024 |
|
|
(outflows) |
|
|
Acquisition(1) |
|
|
change |
|
|
FX impact(2) |
|
|
2024 |
|
|
Average AUM(3) |
|
|||||||
Active: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Equity |
$ |
492,193 |
|
|
$ |
(8,057 |
) |
|
$ |
- |
|
|
$ |
(6,198 |
) |
|
$ |
(10,775 |
) |
|
$ |
467,163 |
|
|
$ |
480,255 |
|
Fixed income |
|
1,171,739 |
|
|
|
1,580 |
|
|
|
- |
|
|
|
(22,623 |
) |
|
|
(16,822 |
) |
|
|
1,133,874 |
|
|
|
1,148,283 |
|
Multi-asset |
|
988,035 |
|
|
|
23,420 |
|
|
|
- |
|
|
|
(10,050 |
) |
|
|
(22,404 |
) |
|
|
979,001 |
|
|
|
987,720 |
|
Alternatives |
|
219,824 |
|
|
|
5,887 |
|
|
|
69,875 |
|
|
|
(560 |
) |
|
|
(4,408 |
) |
|
|
290,618 |
|
|
|
272,039 |
|
Active subtotal |
|
2,871,791 |
|
|
|
22,830 |
|
|
|
69,875 |
|
|
|
(39,431 |
) |
|
|
(54,409 |
) |
|
|
2,870,656 |
|
|
|
2,888,297 |
|
Index and ETFs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
ETFs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Equity |
|
3,061,840 |
|
|
|
110,601 |
|
|
|
- |
|
|
|
(43,614 |
) |
|
|
(22,429 |
) |
|
|
3,106,398 |
|
|
|
3,090,667 |
|
Fixed income |
|
1,019,176 |
|
|
|
11,834 |
|
|
|
- |
|
|
|
(34,956 |
) |
|
|
(10,402 |
) |
|
|
985,652 |
|
|
|
1,005,156 |
|
Multi-asset |
|
10,036 |
|
|
|
1,070 |
|
|
|
- |
|
|
|
(153 |
) |
|
|
(219 |
) |
|
|
10,734 |
|
|
|
10,281 |
|
Alternatives |
|
97,283 |
|
|
|
19,136 |
|
|
|
- |
|
|
|
11,332 |
|
|
|
(160 |
) |
|
|
127,591 |
|
|
|
115,012 |
|
ETFs subtotal |
|
4,188,335 |
|
|
|
142,641 |
|
|
|
- |
|
|
|
(67,391 |
) |
|
|
(33,210 |
) |
|
|
4,230,375 |
|
|
|
4,221,116 |
|
Non-ETF index: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Equity |
|
2,726,966 |
|
|
|
24,022 |
|
|
|
- |
|
|
|
48,354 |
|
|
|
(62,712 |
) |
|
|
2,736,630 |
|
|
|
2,749,946 |
|
Fixed income |
|
832,779 |
|
|
|
10,370 |
|
|
|
- |
|
|
|
(14,847 |
) |
|
|
(42,159 |
) |
|
|
786,143 |
|
|
|
805,756 |
|
Multi-asset |
|
3,444 |
|
|
|
(183 |
) |
|
|
- |
|
|
|
(1 |
) |
|
|
(74 |
) |
|
|
3,186 |
|
|
|
3,341 |
|
Alternatives |
|
2,660 |
|
|
|
988 |
|
|
|
- |
|
|
|
18 |
|
|
|
(68 |
) |
|
|
3,598 |
|
|
|
3,153 |
|
Non-ETF index subtotal |
|
3,565,849 |
|
|
|
35,197 |
|
|
|
- |
|
|
|
33,524 |
|
|
|
(105,013 |
) |
|
|
3,529,557 |
|
|
|
3,562,196 |
|
Index and ETFs subtotal |
|
7,754,184 |
|
|
|
177,838 |
|
|
|
- |
|
|
|
(33,867 |
) |
|
|
(138,223 |
) |
|
|
7,759,932 |
|
|
|
7,783,312 |
|
Long-term |
$ |
10,625,975 |
|
|
$ |
200,668 |
|
|
$ |
69,875 |
|
|
$ |
(73,298 |
) |
|
$ |
(192,632 |
) |
|
$ |
10,630,588 |
|
|
$ |
10,671,609 |
|
Current Quarter Component Changes by Product Type (Long-Term) |
|
||||||||||||||||||||||||||
|
|
|
|
Net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
September 30, |
|
|
inflows |
|
|
|
|
|
Market |
|
|
|
|
|
December 31, |
|
|
|
|
|||||||
|
2024 |
|
|
(outflows) |
|
|
Acquisition(1) |
|
|
change |
|
|
FX impact(2) |
|
|
2024 |
|
|
Average AUM(3) |
|
|||||||
Equity |
$ |
6,280,999 |
|
|
$ |
126,566 |
|
|
$ |
- |
|
|
$ |
(1,458 |
) |
|
$ |
(95,916 |
) |
|
$ |
6,310,191 |
|
|
$ |
6,320,868 |
|
Fixed income |
|
3,023,694 |
|
|
|
23,784 |
|
|
|
- |
|
|
|
(72,426 |
) |
|
|
(69,383 |
) |
|
|
2,905,669 |
|
|
|
2,959,195 |
|
Multi-asset |
|
1,001,515 |
|
|
|
24,307 |
|
|
|
- |
|
|
|
(10,204 |
) |
|
|
(22,697 |
) |
|
|
992,921 |
|
|
|
1,001,342 |
|
Alternatives: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Private markets |
|
141,409 |
|
|
|
4,730 |
|
|
|
69,875 |
|
|
|
(746 |
) |
|
|
(3,294 |
) |
|
|
211,974 |
|
|
|
193,493 |
|
Liquid alternatives |
|
75,990 |
|
|
|
1,165 |
|
|
|
- |
|
|
|
240 |
|
|
|
(1,005 |
) |
|
|
76,390 |
|
|
|
76,211 |
|
Currency and commodities(4) |
|
102,368 |
|
|
|
20,116 |
|
|
|
- |
|
|
|
11,296 |
|
|
|
(337 |
) |
|
|
133,443 |
|
|
|
120,500 |
|
Alternatives subtotal |
|
319,767 |
|
|
|
26,011 |
|
|
|
69,875 |
|
|
|
10,790 |
|
|
|
(4,636 |
) |
|
|
421,807 |
|
|
|
390,204 |
|
Long-term |
$ |
10,625,975 |
|
|
$ |
200,668 |
|
|
$ |
69,875 |
|
|
$ |
(73,298 |
) |
|
$ |
(192,632 |
) |
|
$ |
10,630,588 |
|
|
$ |
10,671,609 |
|
5
ASSETS UNDER MANAGEMENT
(in millions), (unaudited)
Year-over-Year Component Changes by Client Type and Product Type |
|
||||||||||||||||||||||||||
|
|
|
|
Net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
December 31, |
|
|
inflows |
|
|
|
|
|
Market |
|
|
|
|
|
December 31, |
|
|
|
|
|||||||
|
2023 |
|
|
(outflows) |
|
|
Acquisition(1) |
|
|
change |
|
|
FX impact(2) |
|
|
2024 |
|
|
Average AUM(3) |
|
|||||||
Retail: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Equity |
$ |
435,734 |
|
|
$ |
15,285 |
|
|
$ |
4,074 |
|
|
$ |
54,257 |
|
|
$ |
(4,232 |
) |
|
$ |
505,118 |
|
|
$ |
485,161 |
|
Fixed income |
|
312,799 |
|
|
|
11,671 |
|
|
|
- |
|
|
|
1,483 |
|
|
|
(7,312 |
) |
|
|
318,641 |
|
|
|
316,520 |
|
Multi-asset |
|
139,537 |
|
|
|
(2,328 |
) |
|
|
- |
|
|
|
14,420 |
|
|
|
(651 |
) |
|
|
150,978 |
|
|
|
147,169 |
|
Alternatives |
|
41,627 |
|
|
|
(261 |
) |
|
|
- |
|
|
|
69 |
|
|
|
(345 |
) |
|
|
41,090 |
|
|
|
41,087 |
|
Retail subtotal |
|
929,697 |
|
|
|
24,367 |
|
|
|
4,074 |
|
|
|
70,229 |
|
|
|
(12,540 |
) |
|
|
1,015,827 |
|
|
|
989,937 |
|
ETFs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Equity |
|
2,532,631 |
|
|
|
236,357 |
|
|
|
- |
|
|
|
359,322 |
|
|
|
(21,912 |
) |
|
|
3,106,398 |
|
|
|
2,845,456 |
|
Fixed income |
|
898,403 |
|
|
|
112,341 |
|
|
|
- |
|
|
|
(16,291 |
) |
|
|
(8,801 |
) |
|
|
985,652 |
|
|
|
948,250 |
|
Multi-asset |
|
9,140 |
|
|
|
1,025 |
|
|
|
- |
|
|
|
841 |
|
|
|
(272 |
) |
|
|
10,734 |
|
|
|
9,451 |
|
Alternatives |
|
59,125 |
|
|
|
40,710 |
|
|
|
- |
|
|
|
27,919 |
|
|
|
(163 |
) |
|
|
127,591 |
|
|
|
89,331 |
|
ETFs subtotal |
|
3,499,299 |
|
|
|
390,433 |
|
|
|
- |
|
|
|
371,791 |
|
|
|
(31,148 |
) |
|
|
4,230,375 |
|
|
|
3,892,488 |
|
Institutional: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Active: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Equity |
|
186,688 |
|
|
|
5,380 |
|
|
|
- |
|
|
|
30,876 |
|
|
|
(4,096 |
) |
|
|
218,848 |
|
|
|
207,929 |
|
Fixed income |
|
836,823 |
|
|
|
(2,843 |
) |
|
|
- |
|
|
|
16,885 |
|
|
|
(10,537 |
) |
|
|
840,328 |
|
|
|
841,830 |
|
Multi-asset |
|
717,182 |
|
|
|
54,887 |
|
|
|
- |
|
|
|
72,798 |
|
|
|
(16,828 |
) |
|
|
828,039 |
|
|
|
774,210 |
|
Alternatives |
|
171,980 |
|
|
|
7,023 |
|
|
|
69,875 |
|
|
|
3,618 |
|
|
|
(2,962 |
) |
|
|
249,534 |
|
|
|
191,190 |
|
Active subtotal |
|
1,912,673 |
|
|
|
64,447 |
|
|
|
69,875 |
|
|
|
124,177 |
|
|
|
(34,423 |
) |
|
|
2,136,749 |
|
|
|
2,015,159 |
|
Index: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Equity |
|
2,138,291 |
|
|
|
(31,454 |
) |
|
|
- |
|
|
|
420,860 |
|
|
|
(47,870 |
) |
|
|
2,479,827 |
|
|
|
2,333,824 |
|
Fixed income |
|
756,001 |
|
|
|
42,500 |
|
|
|
- |
|
|
|
(5,068 |
) |
|
|
(32,385 |
) |
|
|
761,048 |
|
|
|
759,871 |
|
Multi-asset |
|
4,945 |
|
|
|
(1,906 |
) |
|
|
- |
|
|
|
204 |
|
|
|
(73 |
) |
|
|
3,170 |
|
|
|
3,693 |
|
Alternatives |
|
3,252 |
|
|
|
234 |
|
|
|
- |
|
|
|
165 |
|
|
|
(59 |
) |
|
|
3,592 |
|
|
|
2,912 |
|
Index subtotal |
|
2,902,489 |
|
|
|
9,374 |
|
|
|
- |
|
|
|
416,161 |
|
|
|
(80,387 |
) |
|
|
3,247,637 |
|
|
|
3,100,300 |
|
Institutional subtotal |
|
4,815,162 |
|
|
|
73,821 |
|
|
|
69,875 |
|
|
|
540,338 |
|
|
|
(114,810 |
) |
|
|
5,384,386 |
|
|
|
5,115,459 |
|
Long-term |
|
9,244,158 |
|
|
|
488,621 |
|
|
|
73,949 |
|
|
|
982,358 |
|
|
|
(158,498 |
) |
|
|
10,630,588 |
|
|
|
9,997,884 |
|
Cash management |
|
764,837 |
|
|
|
152,730 |
|
|
|
- |
|
|
|
10,606 |
|
|
|
(7,510 |
) |
|
|
920,663 |
|
|
|
806,123 |
|
Total |
$ |
10,008,995 |
|
|
$ |
641,351 |
|
|
$ |
73,949 |
|
|
$ |
992,964 |
|
|
$ |
(166,008 |
) |
|
$ |
11,551,251 |
|
|
$ |
10,804,007 |
|
Year-over-Year Component Changes by Investment Style and Product Type (Long-Term) |
|
||||||||||||||||||||||||||
|
|
|
|
Net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
December 31, |
|
|
inflows |
|
|
|
|
|
Market |
|
|
|
|
|
December 31, |
|
|
|
|
|||||||
|
2023 |
|
|
(outflows) |
|
|
Acquisition(1) |
|
|
change |
|
|
FX impact(2) |
|
|
2024 |
|
|
Average AUM(3) |
|
|||||||
Active: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Equity |
$ |
427,448 |
|
|
$ |
(6,333 |
) |
|
$ |
4,074 |
|
|
$ |
48,479 |
|
|
$ |
(6,505 |
) |
|
$ |
467,163 |
|
|
$ |
461,583 |
|
Fixed income |
|
1,123,422 |
|
|
|
9,184 |
|
|
|
- |
|
|
|
18,516 |
|
|
|
(17,248 |
) |
|
|
1,133,874 |
|
|
|
1,133,152 |
|
Multi-asset |
|
856,705 |
|
|
|
52,553 |
|
|
|
- |
|
|
|
87,221 |
|
|
|
(17,478 |
) |
|
|
979,001 |
|
|
|
921,364 |
|
Alternatives |
|
213,603 |
|
|
|
6,760 |
|
|
|
69,875 |
|
|
|
3,687 |
|
|
|
(3,307 |
) |
|
|
290,618 |
|
|
|
232,274 |
|
Active subtotal |
|
2,621,178 |
|
|
|
62,164 |
|
|
|
73,949 |
|
|
|
157,903 |
|
|
|
(44,538 |
) |
|
|
2,870,656 |
|
|
|
2,748,373 |
|
Index and ETFs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
ETFs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Equity |
|
2,532,631 |
|
|
|
236,357 |
|
|
|
- |
|
|
|
359,322 |
|
|
|
(21,912 |
) |
|
|
3,106,398 |
|
|
|
2,845,456 |
|
Fixed income |
|
898,403 |
|
|
|
112,341 |
|
|
|
- |
|
|
|
(16,291 |
) |
|
|
(8,801 |
) |
|
|
985,652 |
|
|
|
948,250 |
|
Multi-asset |
|
9,140 |
|
|
|
1,025 |
|
|
|
- |
|
|
|
841 |
|
|
|
(272 |
) |
|
|
10,734 |
|
|
|
9,451 |
|
Alternatives |
|
59,125 |
|
|
|
40,710 |
|
|
|
- |
|
|
|
27,919 |
|
|
|
(163 |
) |
|
|
127,591 |
|
|
|
89,331 |
|
ETFs subtotal |
|
3,499,299 |
|
|
|
390,433 |
|
|
|
- |
|
|
|
371,791 |
|
|
|
(31,148 |
) |
|
|
4,230,375 |
|
|
|
3,892,488 |
|
Non-ETF index: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Equity |
|
2,333,265 |
|
|
|
(4,456 |
) |
|
|
- |
|
|
|
457,514 |
|
|
|
(49,693 |
) |
|
|
2,736,630 |
|
|
|
2,565,331 |
|
Fixed income |
|
782,201 |
|
|
|
42,144 |
|
|
|
- |
|
|
|
(5,216 |
) |
|
|
(32,986 |
) |
|
|
786,143 |
|
|
|
785,069 |
|
Multi-asset |
|
4,959 |
|
|
|
(1,900 |
) |
|
|
- |
|
|
|
201 |
|
|
|
(74 |
) |
|
|
3,186 |
|
|
|
3,708 |
|
Alternatives |
|
3,256 |
|
|
|
236 |
|
|
|
- |
|
|
|
165 |
|
|
|
(59 |
) |
|
|
3,598 |
|
|
|
2,915 |
|
Non-ETF index subtotal |
|
3,123,681 |
|
|
|
36,024 |
|
|
|
- |
|
|
|
452,664 |
|
|
|
(82,812 |
) |
|
|
3,529,557 |
|
|
|
3,357,023 |
|
Index and ETFs subtotal |
|
6,622,980 |
|
|
|
426,457 |
|
|
|
- |
|
|
|
824,455 |
|
|
|
(113,960 |
) |
|
|
7,759,932 |
|
|
|
7,249,511 |
|
Long-term |
$ |
9,244,158 |
|
|
$ |
488,621 |
|
|
$ |
73,949 |
|
|
$ |
982,358 |
|
|
$ |
(158,498 |
) |
|
$ |
10,630,588 |
|
|
$ |
9,997,884 |
|
Year-over-Year Component Changes by Product Type (Long-Term) |
|
||||||||||||||||||||||||||
|
|
|
|
Net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
December 31, |
|
|
inflows |
|
|
|
|
|
Market |
|
|
|
|
|
December 31, |
|
|
|
|
|||||||
|
2023 |
|
|
(outflows) |
|
|
Acquisition(1) |
|
|
change |
|
|
FX impact(2) |
|
|
2024 |
|
|
Average AUM(3) |
|
|||||||
Equity |
$ |
5,293,344 |
|
|
$ |
225,568 |
|
|
$ |
4,074 |
|
|
$ |
865,315 |
|
|
$ |
(78,110 |
) |
|
$ |
6,310,191 |
|
|
$ |
5,872,370 |
|
Fixed income |
|
2,804,026 |
|
|
|
163,669 |
|
|
|
- |
|
|
|
(2,991 |
) |
|
|
(59,035 |
) |
|
|
2,905,669 |
|
|
|
2,866,471 |
|
Multi-asset |
|
870,804 |
|
|
|
51,678 |
|
|
|
- |
|
|
|
88,263 |
|
|
|
(17,824 |
) |
|
|
992,921 |
|
|
|
934,523 |
|
Alternatives: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Private markets |
|
136,909 |
|
|
|
9,457 |
|
|
|
69,875 |
|
|
|
(1,803 |
) |
|
|
(2,464 |
) |
|
|
211,974 |
|
|
|
154,597 |
|
Liquid alternatives |
|
74,233 |
|
|
|
(2,609 |
) |
|
|
- |
|
|
|
5,482 |
|
|
|
(716 |
) |
|
|
76,390 |
|
|
|
75,402 |
|
Currency and commodities(4) |
|
64,842 |
|
|
|
40,858 |
|
|
|
- |
|
|
|
28,092 |
|
|
|
(349 |
) |
|
|
133,443 |
|
|
|
94,521 |
|
Alternatives subtotal |
|
275,984 |
|
|
|
47,706 |
|
|
|
69,875 |
|
|
|
31,771 |
|
|
|
(3,529 |
) |
|
|
421,807 |
|
|
|
324,520 |
|
Long-term |
$ |
9,244,158 |
|
|
$ |
488,621 |
|
|
$ |
73,949 |
|
|
$ |
982,358 |
|
|
$ |
(158,498 |
) |
|
$ |
10,630,588 |
|
|
$ |
9,997,884 |
|
6
SUMMARY OF REVENUE
|
Three Months |
|
|
|
|
|
Three Months |
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Ended |
|
|
|
|
|
Ended |
|
|
|
|
|
Year Ended |
|
|
|
|
||||||||||||||
|
December 31, |
|
|
|
|
|
September 30, |
|
|
|
|
|
December 31, |
|
|
|
|
||||||||||||||
(in millions), (unaudited) |
2024 |
|
|
2023 |
|
|
Change |
|
|
2024 |
|
|
Change |
|
|
2024 |
|
|
2023 |
|
|
Change |
|
||||||||
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Investment advisory, administration fees and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Active |
$ |
558 |
|
|
$ |
484 |
|
|
$ |
74 |
|
|
$ |
553 |
|
|
$ |
5 |
|
|
$ |
2,166 |
|
|
$ |
2,000 |
|
|
$ |
166 |
|
ETFs |
|
1,375 |
|
|
|
1,102 |
|
|
|
273 |
|
|
|
1,309 |
|
|
|
66 |
|
|
|
5,124 |
|
|
|
4,418 |
|
|
|
706 |
|
Non-ETF index |
|
209 |
|
|
|
183 |
|
|
|
26 |
|
|
|
198 |
|
|
|
11 |
|
|
|
784 |
|
|
|
743 |
|
|
|
41 |
|
Equity subtotal |
|
2,142 |
|
|
|
1,769 |
|
|
|
373 |
|
|
|
2,060 |
|
|
|
82 |
|
|
|
8,074 |
|
|
|
7,161 |
|
|
|
913 |
|
Fixed income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Active |
|
494 |
|
|
|
468 |
|
|
|
26 |
|
|
|
493 |
|
|
|
1 |
|
|
|
1,952 |
|
|
|
1,897 |
|
|
|
55 |
|
ETFs |
|
360 |
|
|
|
311 |
|
|
|
49 |
|
|
|
354 |
|
|
|
6 |
|
|
|
1,367 |
|
|
|
1,230 |
|
|
|
137 |
|
Non-ETF index |
|
96 |
|
|
|
85 |
|
|
|
11 |
|
|
|
93 |
|
|
|
3 |
|
|
|
369 |
|
|
|
353 |
|
|
|
16 |
|
Fixed income subtotal |
|
950 |
|
|
|
864 |
|
|
|
86 |
|
|
|
940 |
|
|
|
10 |
|
|
|
3,688 |
|
|
|
3,480 |
|
|
|
208 |
|
Multi-asset |
|
326 |
|
|
|
299 |
|
|
|
27 |
|
|
|
325 |
|
|
|
1 |
|
|
|
1,278 |
|
|
|
1,203 |
|
|
|
75 |
|
Alternatives: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Private markets |
|
480 |
|
|
|
251 |
|
|
|
229 |
|
|
|
235 |
|
|
|
245 |
|
|
|
1,196 |
|
|
|
889 |
|
|
|
307 |
|
Liquid alternatives |
|
146 |
|
|
|
138 |
|
|
|
8 |
|
|
|
143 |
|
|
|
3 |
|
|
|
568 |
|
|
|
572 |
|
|
|
(4 |
) |
Currency and commodities(1) |
|
80 |
|
|
|
44 |
|
|
|
36 |
|
|
|
63 |
|
|
|
17 |
|
|
|
247 |
|
|
|
185 |
|
|
|
62 |
|
Alternatives subtotal |
|
706 |
|
|
|
433 |
|
|
|
273 |
|
|
|
441 |
|
|
|
265 |
|
|
|
2,011 |
|
|
|
1,646 |
|
|
|
365 |
|
Long-term |
|
4,124 |
|
|
|
3,365 |
|
|
|
759 |
|
|
|
3,766 |
|
|
|
358 |
|
|
|
15,051 |
|
|
|
13,490 |
|
|
|
1,561 |
|
Cash management |
|
293 |
|
|
|
240 |
|
|
|
53 |
|
|
|
264 |
|
|
|
29 |
|
|
|
1,049 |
|
|
|
909 |
|
|
|
140 |
|
Total investment advisory, administration |
|
4,417 |
|
|
|
3,605 |
|
|
|
812 |
|
|
|
4,030 |
|
|
|
387 |
|
|
|
16,100 |
|
|
|
14,399 |
|
|
|
1,701 |
|
Investment advisory performance fees: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Equity |
|
112 |
|
|
|
61 |
|
|
|
51 |
|
|
|
13 |
|
|
|
99 |
|
|
|
161 |
|
|
|
99 |
|
|
|
62 |
|
Fixed income |
|
22 |
|
|
|
2 |
|
|
|
20 |
|
|
|
3 |
|
|
|
19 |
|
|
|
34 |
|
|
|
4 |
|
|
|
30 |
|
Multi-asset |
|
10 |
|
|
|
5 |
|
|
|
5 |
|
|
|
1 |
|
|
|
9 |
|
|
|
24 |
|
|
|
28 |
|
|
|
(4 |
) |
Alternatives: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Private markets |
|
108 |
|
|
|
149 |
|
|
|
(41 |
) |
|
|
7 |
|
|
|
101 |
|
|
|
308 |
|
|
|
273 |
|
|
|
35 |
|
Liquid alternatives |
|
199 |
|
|
|
94 |
|
|
|
105 |
|
|
|
364 |
|
|
|
(165 |
) |
|
|
680 |
|
|
|
150 |
|
|
|
530 |
|
Alternatives subtotal |
|
307 |
|
|
|
243 |
|
|
|
64 |
|
|
|
371 |
|
|
|
(64 |
) |
|
|
988 |
|
|
|
423 |
|
|
|
565 |
|
Total investment advisory performance fees |
|
451 |
|
|
|
311 |
|
|
|
140 |
|
|
|
388 |
|
|
|
63 |
|
|
|
1,207 |
|
|
|
554 |
|
|
|
653 |
|
Technology services revenue |
|
428 |
|
|
|
379 |
|
|
|
49 |
|
|
|
403 |
|
|
|
25 |
|
|
|
1,603 |
|
|
|
1,485 |
|
|
|
118 |
|
Distribution fees |
|
322 |
|
|
|
303 |
|
|
|
19 |
|
|
|
323 |
|
|
|
(1 |
) |
|
|
1,273 |
|
|
|
1,262 |
|
|
|
11 |
|
Advisory and other revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Advisory |
|
14 |
|
|
|
15 |
|
|
|
(1 |
) |
|
|
11 |
|
|
|
3 |
|
|
|
49 |
|
|
|
81 |
|
|
|
(32 |
) |
Other |
|
45 |
|
|
|
18 |
|
|
|
27 |
|
|
|
42 |
|
|
|
3 |
|
|
|
175 |
|
|
|
78 |
|
|
|
97 |
|
Total advisory and other revenue |
|
59 |
|
|
|
33 |
|
|
|
26 |
|
|
|
53 |
|
|
|
6 |
|
|
|
224 |
|
|
|
159 |
|
|
|
65 |
|
Total revenue |
$ |
5,677 |
|
|
$ |
4,631 |
|
|
$ |
1,046 |
|
|
$ |
5,197 |
|
|
$ |
480 |
|
|
$ |
20,407 |
|
|
$ |
17,859 |
|
|
$ |
2,548 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Highlights
Securities lending revenue of $161 million increased from $157 million in the fourth quarter of 2023 and $149 million in the third quarter of 2024.
Performance fees increased $63 million from the third quarter of 2024, primarily driven by higher revenue from private markets and long-only products, partially offset by strong performance from a single hedge fund with an annual performance measurement period that ends in the third quarter.
7
SUMMARY OF OPERATING EXPENSE
|
Three Months |
|
|
|
|
|
Three Months |
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Ended |
|
|
|
|
|
Ended |
|
|
|
|
|
Year Ended |
|
|
|
|
||||||||||||||
|
December 31, |
|
|
|
|
|
September 30, |
|
|
|
|
|
December 31, |
|
|
|
|
||||||||||||||
(in millions), (unaudited) |
2024 |
|
|
2023 |
|
|
Change |
|
|
2024 |
|
|
Change |
|
|
2024 |
|
|
2023 |
|
|
Change |
|
||||||||
Operating expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Employee compensation and benefits |
$ |
1,885 |
|
|
$ |
1,503 |
|
|
$ |
382 |
|
|
$ |
1,578 |
|
|
$ |
307 |
|
|
$ |
6,546 |
|
|
$ |
5,779 |
|
|
$ |
767 |
|
Sales, asset and account expense(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Distribution and servicing costs |
|
565 |
|
|
|
502 |
|
|
|
63 |
|
|
|
549 |
|
|
|
16 |
|
|
|
2,171 |
|
|
|
2,051 |
|
|
|
120 |
|
Direct fund expense |
|
389 |
|
|
|
318 |
|
|
|
71 |
|
|
|
379 |
|
|
|
10 |
|
|
|
1,464 |
|
|
|
1,331 |
|
|
|
133 |
|
Sub-advisory and other |
|
42 |
|
|
|
35 |
|
|
|
7 |
|
|
|
34 |
|
|
|
8 |
|
|
|
140 |
|
|
|
116 |
|
|
|
24 |
|
Total sales, asset and account expense |
|
996 |
|
|
|
855 |
|
|
|
141 |
|
|
|
962 |
|
|
|
34 |
|
|
|
3,775 |
|
|
|
3,498 |
|
|
|
277 |
|
General and administration expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Marketing and promotional |
|
92 |
|
|
|
87 |
|
|
|
5 |
|
|
|
64 |
|
|
|
28 |
|
|
|
314 |
|
|
|
309 |
|
|
|
5 |
|
Occupancy and office related |
|
113 |
|
|
|
105 |
|
|
|
8 |
|
|
|
105 |
|
|
|
8 |
|
|
|
421 |
|
|
|
418 |
|
|
|
3 |
|
Portfolio services |
|
68 |
|
|
|
68 |
|
|
|
- |
|
|
|
65 |
|
|
|
3 |
|
|
|
262 |
|
|
|
270 |
|
|
|
(8 |
) |
Technology |
|
182 |
|
|
|
186 |
|
|
|
(4 |
) |
|
|
175 |
|
|
|
7 |
|
|
|
674 |
|
|
|
607 |
|
|
|
67 |
|
Professional services |
|
88 |
|
|
|
67 |
|
|
|
21 |
|
|
|
67 |
|
|
|
21 |
|
|
|
277 |
|
|
|
195 |
|
|
|
82 |
|
Communications |
|
10 |
|
|
|
11 |
|
|
|
(1 |
) |
|
|
10 |
|
|
|
- |
|
|
|
39 |
|
|
|
47 |
|
|
|
(8 |
) |
Foreign exchange remeasurement |
|
(7 |
) |
|
|
(4 |
) |
|
|
(3 |
) |
|
|
3 |
|
|
|
(10 |
) |
|
|
- |
|
|
|
(6 |
) |
|
|
6 |
|
Contingent consideration fair value |
|
(28 |
) |
|
|
2 |
|
|
|
(30 |
) |
|
|
(2 |
) |
|
|
(26 |
) |
|
|
(36 |
) |
|
|
3 |
|
|
|
(39 |
) |
Other general and administration |
|
78 |
|
|
|
67 |
|
|
|
11 |
|
|
|
75 |
|
|
|
3 |
|
|
|
270 |
|
|
|
252 |
|
|
|
18 |
|
Total general and administration expense |
|
596 |
|
|
|
589 |
|
|
|
7 |
|
|
|
562 |
|
|
|
34 |
|
|
|
2,221 |
|
|
|
2,095 |
|
|
|
126 |
|
Restructuring charge |
|
- |
|
|
|
61 |
|
|
|
(61 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
61 |
|
|
|
(61 |
) |
Amortization and impairment of |
|
125 |
|
|
|
38 |
|
|
|
87 |
|
|
|
89 |
|
|
|
36 |
|
|
|
291 |
|
|
|
151 |
|
|
|
140 |
|
Total operating expense |
$ |
3,602 |
|
|
$ |
3,046 |
|
|
$ |
556 |
|
|
$ |
3,191 |
|
|
$ |
411 |
|
|
$ |
12,833 |
|
|
$ |
11,584 |
|
|
$ |
1,249 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Highlights
8
SUMMARY OF NONOPERATING INCOME (EXPENSE), LESS NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
Three Months |
|
|
|
|
|
Three Months |
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Ended |
|
|
|
|
|
Ended |
|
|
|
|
|
Year Ended |
|
|
|
|
||||||||||||||
|
December 31, |
|
|
|
|
|
September 30, |
|
|
|
|
|
December 31, |
|
|
|
|
||||||||||||||
(in millions), (unaudited) |
2024 |
|
|
2023 |
|
|
Change |
|
|
2024 |
|
|
Change |
|
|
2024 |
|
|
2023 |
|
|
Change |
|
||||||||
Nonoperating income (expense), GAAP basis |
$ |
28 |
|
|
$ |
342 |
|
|
$ |
(314 |
) |
|
$ |
259 |
|
|
$ |
(231 |
) |
|
$ |
721 |
|
|
$ |
880 |
|
|
$ |
(159 |
) |
Less: Net income (loss) attributable to |
|
(9 |
) |
|
|
114 |
|
|
|
(123 |
) |
|
|
60 |
|
|
|
(69 |
) |
|
|
143 |
|
|
|
174 |
|
|
|
(31 |
) |
Nonoperating income (expense), net of NCI |
|
37 |
|
|
|
228 |
|
|
|
(191 |
) |
|
|
199 |
|
|
|
(162 |
) |
|
|
578 |
|
|
|
706 |
|
|
|
(128 |
) |
Less: Hedge gain (loss) on deferred cash |
|
(2 |
) |
|
|
29 |
|
|
|
(31 |
) |
|
|
9 |
|
|
|
(11 |
) |
|
|
45 |
|
|
|
58 |
|
|
|
(13 |
) |
Nonoperating income (expense), net of NCI, as |
$ |
39 |
|
|
$ |
199 |
|
|
$ |
(160 |
) |
|
$ |
190 |
|
|
$ |
(151 |
) |
|
$ |
533 |
|
|
$ |
648 |
|
|
$ |
(115 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Three Months |
|
|
|
|
|
Three Months |
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Ended |
|
|
|
|
|
Ended |
|
|
|
|
|
Year Ended |
|
|
|
|
||||||||||||||
|
December 31, |
|
|
|
|
|
September 30, |
|
|
|
|
|
December 31, |
|
|
|
|
||||||||||||||
(in millions), (unaudited) |
2024 |
|
|
2023 |
|
|
Change |
|
|
2024 |
|
|
Change |
|
|
2024 |
|
|
2023 |
|
|
Change |
|
||||||||
Net gain (loss) on investments, net of NCI |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Private equity |
$ |
(42 |
) |
|
$ |
68 |
|
|
$ |
(110 |
) |
|
$ |
9 |
|
|
$ |
(51 |
) |
|
$ |
(10 |
) |
|
$ |
349 |
|
|
$ |
(359 |
) |
Real assets |
|
(5 |
) |
|
|
2 |
|
|
|
(7 |
) |
|
|
13 |
|
|
|
(18 |
) |
|
|
14 |
|
|
|
13 |
|
|
|
1 |
|
Other alternatives(3) |
|
8 |
|
|
|
17 |
|
|
|
(9 |
) |
|
|
9 |
|
|
|
(1 |
) |
|
|
41 |
|
|
|
49 |
|
|
|
(8 |
) |
Other investments(4) |
|
42 |
|
|
|
15 |
|
|
|
27 |
|
|
|
20 |
|
|
|
22 |
|
|
|
127 |
|
|
|
66 |
|
|
|
61 |
|
Hedge gain (loss) on deferred cash |
|
(2 |
) |
|
|
29 |
|
|
|
(31 |
) |
|
|
9 |
|
|
|
(11 |
) |
|
|
45 |
|
|
|
58 |
|
|
|
(13 |
) |
Subtotal |
|
1 |
|
|
|
131 |
|
|
|
(130 |
) |
|
|
60 |
|
|
|
(59 |
) |
|
|
217 |
|
|
|
535 |
|
|
|
(318 |
) |
Other income/gain (expense/loss)(5) |
|
(10 |
) |
|
|
20 |
|
|
|
(30 |
) |
|
|
57 |
|
|
|
(67 |
) |
|
|
132 |
|
|
|
(10 |
) |
|
|
142 |
|
Total net gain (loss) on investments, net of NCI |
|
(9 |
) |
|
|
151 |
|
|
|
(160 |
) |
|
|
117 |
|
|
|
(126 |
) |
|
|
349 |
|
|
|
525 |
|
|
|
(176 |
) |
Interest and dividend income |
|
212 |
|
|
|
159 |
|
|
|
53 |
|
|
|
236 |
|
|
|
(24 |
) |
|
|
767 |
|
|
|
473 |
|
|
|
294 |
|
Interest expense |
|
(166 |
) |
|
|
(82 |
) |
|
|
(84 |
) |
|
|
(154 |
) |
|
|
(12 |
) |
|
|
(538 |
) |
|
|
(292 |
) |
|
|
(246 |
) |
Net interest income (expense) |
|
46 |
|
|
|
77 |
|
|
|
(31 |
) |
|
|
82 |
|
|
|
(36 |
) |
|
|
229 |
|
|
|
181 |
|
|
|
48 |
|
Nonoperating income (expense), net of NCI |
|
37 |
|
|
|
228 |
|
|
|
(191 |
) |
|
|
199 |
|
|
|
(162 |
) |
|
|
578 |
|
|
|
706 |
|
|
|
(128 |
) |
Less: Hedge gain (loss) on deferred cash |
|
(2 |
) |
|
|
29 |
|
|
|
(31 |
) |
|
|
9 |
|
|
|
(11 |
) |
|
|
45 |
|
|
|
58 |
|
|
|
(13 |
) |
Nonoperating income (expense), net of NCI, as |
$ |
39 |
|
|
$ |
199 |
|
|
$ |
(160 |
) |
|
$ |
190 |
|
|
$ |
(151 |
) |
|
$ |
533 |
|
|
$ |
648 |
|
|
$ |
(115 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUMMARY OF INCOME TAX EXPENSE
|
Three Months |
|
|
|
|
Three Months |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Ended |
|
|
|
|
Ended |
|
|
|
|
|
Year Ended |
|
|
|
|
|||||||||||||||
|
December 31, |
|
|
|
|
September 30, |
|
|
|
|
|
December 31, |
|
|
|
|
|||||||||||||||
(in millions), (unaudited) |
2024 |
|
|
2023 |
|
|
Change |
|
2024 |
|
|
Change |
|
|
2024 |
|
|
2023 |
|
|
Change |
|
|||||||||
Income tax expense |
$ |
442 |
|
|
$ |
438 |
|
|
$ |
4 |
|
|
$ |
574 |
|
|
$ |
(132 |
) |
|
$ |
1,783 |
|
|
$ |
1,479 |
|
|
$ |
304 |
|
Effective tax rate |
|
20.9 |
% |
|
|
24.2 |
% |
|
(330) bps |
|
|
|
26.0 |
% |
|
(510) bps |
|
|
|
21.9 |
% |
|
|
21.2 |
% |
|
70 bps |
|
Highlights
9
RECONCILIATION OF GAAP OPERATING INCOME AND OPERATING MARGIN TO OPERATING INCOME AND OPERATING MARGIN, AS ADJUSTED |
|||||||||||||||||||||
|
|
Three Months Ended |
|
|
Year Ended |
|
|
||||||||||||||
|
|
December 31, |
|
|
September 30, |
|
|
December 31, |
|
|
|||||||||||
(in millions), (unaudited) |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
|||||
Operating income, GAAP basis |
|
$ |
2,075 |
|
|
$ |
1,585 |
|
|
$ |
2,006 |
|
|
$ |
7,574 |
|
|
$ |
6,275 |
|
|
Non-GAAP expense adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Compensation expense related to appreciation (depreciation) |
|
|
- |
|
|
|
28 |
|
|
|
7 |
|
|
|
43 |
|
|
|
57 |
|
|
Amortization and impairment of intangible assets (b) |
|
|
125 |
|
|
|
38 |
|
|
|
89 |
|
|
|
291 |
|
|
|
151 |
|
|
Acquisition-related compensation costs (b) |
|
|
116 |
|
|
|
2 |
|
|
|
11 |
|
|
|
148 |
|
|
|
17 |
|
|
Acquisition-related transaction costs (b)(1) |
|
|
38 |
|
|
|
- |
|
|
|
17 |
|
|
|
90 |
|
|
|
7 |
|
|
Contingent consideration fair value adjustments (b) |
|
|
(28 |
) |
|
|
2 |
|
|
|
(2 |
) |
|
|
(36 |
) |
|
|
3 |
|
|
Lease costs - New York (c) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
14 |
|
|
Restructuring charge (d) |
|
|
- |
|
|
|
61 |
|
|
|
- |
|
|
|
- |
|
|
|
61 |
|
|
Reduction of indemnification asset (e)(1) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
8 |
|
|
Operating income, as adjusted (1) |
|
$ |
2,326 |
|
|
$ |
1,716 |
|
|
$ |
2,128 |
|
|
$ |
8,110 |
|
|
$ |
6,593 |
|
|
Revenue, GAAP basis |
|
$ |
5,677 |
|
|
$ |
4,631 |
|
|
$ |
5,197 |
|
|
$ |
20,407 |
|
|
$ |
17,859 |
|
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Distribution fees |
|
|
(322 |
) |
|
|
(303 |
) |
|
|
(323 |
) |
|
|
(1,273 |
) |
|
|
(1,262 |
) |
|
Investment advisory fees |
|
|
(243 |
) |
|
|
(199 |
) |
|
|
(226 |
) |
|
|
(898 |
) |
|
|
(789 |
) |
|
Revenue used for operating margin measurement |
|
$ |
5,112 |
|
|
$ |
4,129 |
|
|
$ |
4,648 |
|
|
$ |
18,236 |
|
|
$ |
15,808 |
|
|
Operating margin, GAAP basis |
|
|
36.6 |
% |
|
|
34.2 |
% |
|
|
38.6 |
% |
|
|
37.1 |
% |
|
|
35.1 |
% |
|
Operating margin, as adjusted (1) |
|
|
45.5 |
% |
|
|
41.6 |
% |
|
|
45.8 |
% |
|
|
44.5 |
% |
|
|
41.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See note (1) to the condensed consolidated statements of income and supplemental information on pages 11 and 12 for more information on as adjusted items.
RECONCILIATION OF GAAP NONOPERATING INCOME (EXPENSE) TO NONOPERATING INCOME (EXPENSE), LESS NET INCOME (LOSS) ATTRIBUTABLE TO NCI, AS ADJUSTED |
|||||||||||||||||||||
|
|
Three Months Ended |
|
|
Year Ended |
|
|
||||||||||||||
|
|
December 31, |
|
|
September 30, |
|
|
December 31, |
|
|
|||||||||||
(in millions), (unaudited) |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
|||||
Nonoperating income (expense), GAAP basis |
|
$ |
28 |
|
|
$ |
342 |
|
|
$ |
259 |
|
|
$ |
721 |
|
|
$ |
880 |
|
|
Less: Net income (loss) attributable to NCI |
|
|
(9 |
) |
|
|
114 |
|
|
|
60 |
|
|
|
143 |
|
|
|
174 |
|
|
Nonoperating income (expense), net of NCI |
|
|
37 |
|
|
|
228 |
|
|
|
199 |
|
|
|
578 |
|
|
|
706 |
|
|
Less: Hedge gain (loss) on deferred cash compensation |
|
|
(2 |
) |
|
|
29 |
|
|
|
9 |
|
|
|
45 |
|
|
|
58 |
|
|
Nonoperating income (expense), less net income (loss) |
|
$ |
39 |
|
|
$ |
199 |
|
|
$ |
190 |
|
|
$ |
533 |
|
|
$ |
648 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See notes (1) and (2) to the condensed consolidated statements of income and supplemental information on pages 11 and 12 for more information on as adjusted items.
RECONCILIATION OF GAAP NET INCOME ATTRIBUTABLE TO BLACKROCK TO NET INCOME ATTRIBUTABLE TO BLACKROCK, AS ADJUSTED |
|||||||||||||||||||||
|
|
Three Months Ended |
|
|
Year Ended |
|
|
||||||||||||||
|
|
December 31, |
|
|
September 30, |
|
|
December 31, |
|
|
|||||||||||
(in millions, except per share data), (unaudited) |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
|||||
Net income attributable to BlackRock, Inc., GAAP basis |
|
$ |
1,670 |
|
|
$ |
1,375 |
|
|
$ |
1,631 |
|
|
$ |
6,369 |
|
|
$ |
5,502 |
|
|
Non-GAAP adjustments(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net impact of hedged deferred cash compensation plans (a) |
|
|
2 |
|
|
|
(1 |
) |
|
|
(2 |
) |
|
|
(1 |
) |
|
|
(1 |
) |
|
Amortization and impairment of intangible assets (b) |
|
|
94 |
|
|
|
28 |
|
|
|
67 |
|
|
|
218 |
|
|
|
114 |
|
|
Acquisition-related compensation costs (b) |
|
|
87 |
|
|
|
1 |
|
|
|
8 |
|
|
|
110 |
|
|
|
12 |
|
|
Acquisition-related transaction costs (b) |
|
|
28 |
|
|
|
- |
|
|
|
13 |
|
|
|
66 |
|
|
|
5 |
|
|
Contingent consideration fair value adjustments (b) |
|
|
(21 |
) |
|
|
2 |
|
|
|
(2 |
) |
|
|
(27 |
) |
|
|
3 |
|
|
Lease costs - New York (c) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
11 |
|
|
Restructuring charge (d) |
|
|
- |
|
|
|
46 |
|
|
|
- |
|
|
|
- |
|
|
|
46 |
|
|
Income tax matters |
|
|
14 |
|
|
|
- |
|
|
|
- |
|
|
|
(123 |
) |
|
|
- |
|
|
Net income attributable to BlackRock, Inc., as adjusted (3) |
|
$ |
1,874 |
|
|
$ |
1,451 |
|
|
$ |
1,715 |
|
|
$ |
6,612 |
|
|
$ |
5,692 |
|
|
Diluted weighted-average common shares outstanding |
|
|
157.0 |
|
|
|
150.2 |
|
|
|
149.6 |
|
|
|
151.6 |
|
|
|
150.7 |
|
|
Diluted earnings per common share, GAAP basis |
|
$ |
10.63 |
|
|
$ |
9.15 |
|
|
$ |
10.90 |
|
|
$ |
42.01 |
|
|
$ |
36.51 |
|
|
Diluted earnings per common share, as adjusted (3) |
|
$ |
11.93 |
|
|
$ |
9.66 |
|
|
$ |
11.46 |
|
|
$ |
43.61 |
|
|
$ |
37.77 |
|
|
See note (3) to the condensed consolidated statements of income and supplemental information on page 12 for more information on as adjusted items.
10
NOTES TO CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION (unaudited)
BlackRock reports its financial results in accordance with GAAP; however, management believes evaluating the Company’s ongoing operating results may be enhanced if investors have additional non-GAAP financial measures. Adjustments to GAAP financial measures (“non-GAAP adjustments”) include certain items management deems nonrecurring or that occur infrequently, transactions that ultimately will not impact BlackRock’s book value or certain tax items that do not impact cash flow. Management reviews non-GAAP financial measures, in addition to GAAP financial measures, to assess ongoing operations and considers them to be helpful, for both management and investors, in evaluating BlackRock’s financial performance over time. Management also uses non-GAAP financial measures as a benchmark to compare its performance with other companies and to enhance comparability for the reporting periods presented. Non-GAAP financial measures may pose limitations because they do not include all of BlackRock’s revenue and expense. BlackRock’s management does not advocate that investors consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Non-GAAP financial measures may not be comparable to other similarly titled measures of other companies.
Computations and reconciliations for all periods are derived from the condensed consolidated statements of income as follows:
(1) Operating income, as adjusted, and operating margin, as adjusted: Management believes operating income, as adjusted, and operating margin, as adjusted, are effective indicators of BlackRock’s financial performance over time, and, therefore, provide useful disclosure to investors. Management believes that operating margin, as adjusted, reflects the Company’s long-term ability to manage ongoing costs in relation to its revenues. The Company uses operating margin, as adjusted, to assess the Company’s financial performance, to determine the long-term and annual compensation of the Company’s senior-level employees and to evaluate the Company’s relative performance against industry peers. Furthermore, this metric eliminates margin variability arising from the accounting of revenues and expenses related to distributing different product structures in multiple distribution channels utilized by asset managers.
11
(2) Nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted: Management believes nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted, is an effective measure for reviewing BlackRock’s nonoperating contribution to its results and provides comparability of this information among reporting periods. Nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted, excludes the gain (loss) on the economic hedge of certain deferred cash compensation plans. As the gain (loss) on investments and derivatives used to hedge these compensation plans over time substantially offsets the compensation expense related to the market valuation changes on these deferred cash compensation plans, which is included in operating income, GAAP basis, management believes excluding the gain (loss) on the economic hedge of the deferred cash compensation plans when calculating nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted, provides a useful measure for both management and investors of BlackRock’s nonoperating results that impact book value.
(3) Net income attributable to BlackRock, Inc., as adjusted: Management believes net income attributable to BlackRock, Inc., as adjusted, and diluted earnings per common share, as adjusted, are useful measures of BlackRock’s profitability and financial performance. Net income attributable to BlackRock, Inc., as adjusted, equals net income attributable to BlackRock, Inc., GAAP basis, adjusted for certain items management deems nonrecurring or that occur infrequently, transactions that ultimately will not impact BlackRock’s book value or certain tax items that do not impact cash flow.
For each period presented, the non-GAAP adjustments were tax effected at the respective blended rates applicable to the adjustments. Amounts for income tax matters in 2024 include a discrete tax benefit of $137 million recognized in connection with the reorganization and establishment of a more efficient global intellectual property and technology platform and corporate structure. This discrete tax benefit has been excluded from as adjusted results due to the nonrecurring nature of the intellectual property reorganization. In addition, amounts for 2024 include a net noncash expense of $14 million associated with the revaluation of deferred tax liabilities related to intangible assets and goodwill as a result of tax rate changes. This discrete tax expense has been excluded from the as adjusted results as it does not have a cash flow impact as well as to ensure comparability among periods presented.
Per share amounts reflect net income attributable to BlackRock, Inc., as adjusted, divided by diluted weighted-average common shares outstanding.
(4) ACV: Management believes ACV is an effective metric for reviewing BlackRock’s technology services’ ongoing contribution to its operating results and provides comparability of this information among reporting periods while also providing a useful supplemental metric for both management and investors of BlackRock’s growth in technology services revenue over time, as it is linked to the net new business in technology services. ACV represents forward-looking, annualized estimated value of the recurring subscription fees under client contracts, assuming all client contracts that come up for renewal are renewed, unless we have received a notice of termination, even though such notice may not be effective until a later date. ACV also includes the annualized estimated value of new sales, for existing and new clients, when we execute client contracts, even though the recurring fees may not be effective until a later date and excludes nonrecurring fees such as implementation and consulting fees.
12
FORWARD-LOOKING STATEMENTS
This earnings release, and other statements that BlackRock may make, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to BlackRock’s future financial or business performance, strategies or expectations. Forward-looking statements are typically identified by words or phrases such as “trend,” “potential,” “opportunity,” “pipeline,” “believe,” “comfortable,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may” and similar expressions.
BlackRock cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time and may contain information that is not purely historical in nature. Such information may include, among other things, projections and forecasts. There is no guarantee that any forecasts made will come to pass. Forward-looking statements speak only as of the date they are made, and BlackRock assumes no duty to and does not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance.
BlackRock has previously disclosed risk factors in its Securities and Exchange Commission (“SEC”) reports. These risk factors and those identified elsewhere in this earnings release, among others, could cause actual results to differ materially from forward-looking statements or historical performance and include: (1) the introduction, withdrawal, success and timing of business initiatives and strategies; (2) changes and volatility in political, economic or industry conditions, the interest rate environment, foreign exchange rates or financial and capital markets, which could result in changes in demand for products or services or in the value of assets under management; (3) the relative and absolute investment performance of BlackRock’s investment products; (4) BlackRock’s ability to develop new products and services that address client preferences; (5) the impact of increased competition; (6) the impact of recent or future acquisitions or divestitures, including the acquisitions of HPS (the “HPS Transaction”), Preqin (the “Preqin Transaction”) and the GIP Transaction (together with the HPS Transaction and the Preqin Transaction, the “Transactions”); (7) BlackRock’s ability to integrate acquired businesses successfully, including the Transactions; (8) risks related to the HPS Transaction and the Preqin Transaction, including delays in the expected closing date of the HPS Transaction or the Preqin Transaction, the possibility that either or both of the HPS Transaction or the Preqin Transaction does not close, including, but not limited to, due to the failure to satisfy the closing conditions; the possibility that expected synergies and value creation from the HPS Transaction or the Preqin Transaction will not be realized, or will not be realized within the expected time period; and the risk of impacts to business and operational relationships related to disruptions from the HPS Transaction or the Preqin Transaction; (9) the unfavorable resolution of legal proceedings; (10) the extent and timing of any share repurchases; (11) the impact, extent and timing of technological changes and the adequacy of intellectual property, data, information and cybersecurity protection; (12) the failure to effectively manage the development and use of artificial intelligence; (13) attempts to circumvent BlackRock’s operational control environment or the potential for human error in connection with BlackRock’s operational systems; (14) the impact of legislative and regulatory actions and reforms, regulatory, supervisory or enforcement actions of government agencies and governmental scrutiny relating to BlackRock; (15) changes in law and policy and uncertainty pending any such changes; (16) any failure to effectively manage conflicts of interest; (17) damage to BlackRock’s reputation; (18) increasing focus from stakeholders regarding environmental, social and governance matters; (19) geopolitical unrest, terrorist activities, civil or international hostilities, and other events outside BlackRock’s control, including wars, natural disasters and health crises, which may adversely affect the general economy, domestic and local financial and capital markets, specific industries or BlackRock; (20) climate-related risks to BlackRock’s business, products, operations and clients; (21) the ability to attract, train and retain highly qualified and diverse professionals; (22) fluctuations in the carrying value of BlackRock’s economic investments; (23) the impact of changes to tax legislation, including income, payroll and transaction taxes, and taxation on products, which could affect the value proposition to clients and, generally, the tax position of BlackRock; (24) BlackRock’s success in negotiating distribution arrangements and maintaining distribution channels for its products; (25) the failure by key third-party providers of BlackRock to fulfill their obligations to BlackRock; (26) operational, technological and regulatory risks associated with BlackRock’s major technology partnerships; (27) any disruption to the operations of third parties whose functions are integral to BlackRock’s exchange-traded funds platform; (28) the impact of BlackRock electing to provide support to its products from time to time and any potential liabilities related to securities lending or other indemnification obligations; and (29) the impact of problems, instability or failure of other financial institutions or the failure or negative performance of products offered by other financial institutions.
BlackRock’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and BlackRock’s subsequent filings with the SEC, accessible on the SEC’s website at www.sec.gov and on BlackRock’s website at www.blackrock.com, discuss these factors in more detail and identify additional factors that can affect forward-looking statements. The information contained on the Company’s website is not a part of this earnings release.
13
PERFORMANCE NOTES
Past performance is not indicative of future results. Except as specified, the performance information shown is as of December 31, 2024 and is based on preliminary data available at that time. The performance data shown reflects information for all actively and passively managed equity and fixed income accounts, including US registered investment companies, European-domiciled retail funds and separate accounts for which performance data is available, including performance data for high net worth accounts available as of November 30, 2024. The performance data does not include accounts terminated prior to December 31, 2024 and accounts for which data has not yet been verified. If such accounts had been included, the performance data provided may have substantially differed from that shown.
Performance comparisons shown are gross-of-fees for institutional and high net worth separate accounts, and net-of-fees for retail funds. The performance tracking shown for index accounts is based on gross-of-fees performance and includes all institutional accounts and all iShares® funds globally using an index strategy. AUM information is based on AUM available as of December 31, 2024 for each account or fund in the asset class shown without adjustment for overlapping management of the same account or fund. Fund performance reflects the reinvestment of dividends and distributions.
Performance shown is derived from applicable benchmarks or peer median information, as selected by BlackRock, Inc. Peer medians are based in part on data either from Lipper, Inc. or Morningstar, Inc. for each included product.
14
Q4 2024 Earnings Exhibit 99.2 January 15, 2025 Earnings Release Supplement
A broadly diversified business across clients, products and geographies Base fees include investment advisory, administration fees and securities lending revenue. Base Fees and AUM by region data is based on client domicile. 1 Client Type Style Product Type Region Assets Under Management of $11.6 trillion at December 31, 2024 Q4 2024 Base Fees and Securities Lending Revenue of $4.4 billion
Net flows($ in billions) Total BlackRock Retail Long-term Institutional Long-term LTM organic asset growth rate (%) LTM organic base fee growth rate (%) LTM organic asset growth rate measures rolling last twelve months net flows over beginning of period assets. LTM organic base fee growth rate is calculated by dividing net new base fees earned on net asset inflows for the LTM period by the base fee run-rate at the beginning of the period. Totals may not add due to rounding. 2 2% Institutional Active Institutional Index (3)% (2)% (1)% 0% 0% 1% ETFs 11% 7% 6% 7% 7% 6% 8% 8% 11% 4% 4% 3% 3% 3% 5% 4% 0% 1% 1% 1% 1% 3% Long-term Cash Advisory 3% 3% 0% 0% 3% 5% 5% 3% 1% (1)% (2)% 0% 4% 6% (2)% (2)%
Profitability ($ in millions, except per share data) For further information and reconciliations to GAAP, see page 14 of this earnings release supplement, notes (1) through (3) to the condensed consolidated statements of income and supplemental information in the current earnings release, as well as previously filed Form 10-Ks, 10-Qs and 8-Ks. Operating Income, as adjusted Operating Margin, as adjusted Net Income, as adjusted EPS, as adjusted Operating Income and Margin, as adjusted Net Income and EPS, as adjusted 3
Capital management (amounts in millions, except per share data) (1) Q4 2024 weighted-average diluted shares include the impact of 6.9 million shares issued as part of consideration for the acquisition of Global Infrastructure Management, LLC (“GIP”) in October 2024 (the “GIP Transaction”). (2) Amounts above exclude repurchases of employee tax withholdings related to employee stock transactions. Share repurchases and weighted-average diluted shares Share repurchases(2) Weighted-average diluted shares 4 Dividends per share (1)
Major market indices and exchange rates Source: Bloomberg (1) Revenue weighted composite index is calculated by BlackRock to approximate the impact of market fluctuations on BlackRock’s equity base fees. The index is derived from publicly available market indices that represent applicable AUM benchmarks for each equity portfolio, as selected by BlackRock. The performance information for each equity portfolio used to calculate the index may be substantially different from that shown. Index does not include portfolios that do not have an applicable market index. Index does not reflect BlackRock’s investment performance, and is not indicative of past or future results. 5
Quarterly revenue($ in millions) $1,046 $480 Q4 2024 compared to Q4 2023 Q4 2024 compared to Q3 2024 6 Percentage Change Year-over-Year Sequential Base fees 23 % 10 % Securities lending revenue 3 % 8 % Performance fees 45 % 16 % Technology services revenue 13 % 6 % Distribution fees 6 % - % Advisory and other revenue 79 % 11 % Total 23 % 9 %
$812 $387 Q4 2024 compared to Q4 2023 Q4 2024 compared to Q3 2024 Quarterly investment advisory, administration fees and securities lending revenue($ in millions) 7 (1) Includes approximately $230 million of fees related to AUM acquired in the GIP Transaction. (1) (1)
Quarterly expense, as adjusted($ in millions) $436 $282 Q4 2024 compared to Q4 2023 Q4 2024 compared to Q3 2024 8 Percentage Change Year-over-Year Sequential Employee comp. & benefits 20 % 13 % Sales, asset & account 16 % 4 % General & administration - % 7 % Total 15 % 9 % Beginning in the first quarter of 2024, BlackRock, Inc. updated the presentation of the Company’s expense line items by including a new “sales, asset and account expense” income statement caption. Such expense line items have been recast for 2023 to conform with the new presentation. For a recast of 2023 expense line items, see page 12 of Exhibit 99.1 to the Current Report on Form 8-K furnished on April 12, 2024. For information and reconciliations of as adjusted items to GAAP, see page 14 of this earnings release supplement, notes (1) through (3) to the condensed consolidated statements of income and supplemental information in the current earnings release, as well as previously filed Form 10-Ks, 10-Qs and 8-Ks.
$2,548 2024 compared to 2023 9 Percentage Change Year-over-Year Base fees 13 % Securities lending revenue (9) % Performance fees 118 % Technology services revenue 8 % Distribution fees 1 % Advisory and other revenue 41 % Total 14 % Full year revenue($ in millions)
Full year investment advisory, administration fees and securities lending revenue($ in millions) $1,701 2024 compared to 2023 10 (1) Includes approximately $230 million of fees related to AUM acquired in the GIP Transaction. (1)
Full year expense, as adjusted($ in millions) $1,031 2024 compared to 2023 11 Percentage Change Year-over-Year Employee comp. & benefits 11 % Sales, asset & account 8 % General & administration 5 % Total 9 % Beginning in the first quarter of 2024, BlackRock, Inc. updated the presentation of the Company’s expense line items by including a new “sales, asset and account expense” income statement caption. Such expense line items have been recast for 2023 to conform with the new presentation. For a recast of 2023 expense line items, see page 12 of Exhibit 99.1 to the Current Report on Form 8-K furnished on April 12, 2024. For information and reconciliations of as adjusted items to GAAP, see page 14 of this earnings release supplement, notes (1) through (3) to the condensed consolidated statements of income and supplemental information in the current earnings release, as well as previously filed Form 10-Ks, 10-Qs and 8-Ks.
Alternatives at BlackRock(in $ billions) Q4 2023 Q4 2024 Client Assets Multi-alternatives Real estate Private equity Private credit Infrastructure Fee-Paying AUM Q4 2023 Q4 2024 Liquid alternatives Liquid credit Definitions: Client Assets: Alternative assets at BlackRock across reported AUM and non-fee-paying committed capital, co-investments and market related gains on invested assets. Fee-Paying AUM: Assets reported in BlackRock’s AUM. Includes both invested capital and committed capital that is fee-paying in its commitment stage. Private Credit: Primarily represents Direct Lending, Opportunistic and Venture Debt strategies. It does not include private credit assets across infrastructure and real estate debt, as well as assets in private placements and multi-strategy credit funds, which are reported within fixed income and multi-asset. Liquid Alternatives: Includes hedge funds and hedge fund solutions (funds of funds). Liquid Credit: Active liquid credit strategies (such as high yield, bank loans, and collateralized loans) included in fixed income AUM. Totals may not add due to rounding.
Private markets fee-paying AUM component changes(in $ billions) (1) Private Credit primarily represents Direct Lending, Opportunistic and Venture Debt strategies. It does not include private credit assets across infrastructure and real estate debt, as well as assets in private placements and multi-strategies funds, which are reported within fixed income and multi-asset. (2) Realizations represent return of capital/return on investments included in net flows. (3) Amounts include AUM attributable to the GIP Transaction. Totals may not add due to rounding.
Reconciliation between GAAP and as adjusted ($ in millions) Non-GAAP adjustments include amounts related to (i) net impact of compensation expense and hedge (gain) loss on deferred cash compensation plans, (ii) amortization and impairment of intangible assets, (iii) acquisition-related compensation costs, (iv) acquisition-related transaction costs, (v) contingent consideration fair value adjustments, (vi) Lease costs – New York, (vii) net income (loss) attributable to noncontrolling interests, (viii) a reduction of indemnification asset, (ix) restructuring charges and (x) income tax matters, as applicable. For further information and reconciliation between GAAP and as adjusted items, see notes (1) through (3) to the condensed consolidated statements of income and supplemental information in the current earnings release, as well as previously filed Form 10-Ks, 10-Qs and 8-Ks.
Important notes This presentation, and other statements that BlackRock may make, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to BlackRock’s future financial or business performance, strategies or expectations. Forward-looking statements are typically identified by words or phrases such as “trend,” “potential,” “opportunity,” “pipeline,” “believe,” “comfortable,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may” and similar expressions. BlackRock cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time and may contain information that is not purely historical in nature. Such information may include, among other things, projections and forecasts. There is no guarantee that any forecasts made will come to pass. Forward-looking statements speak only as of the date they are made, and BlackRock assumes no duty to and does not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance. BlackRock has previously disclosed risk factors in its Securities and Exchange Commission reports. These risk factors and those identified elsewhere in this earnings release, among others, could cause actual results to differ materially from forward-looking statements or historical performance and include: (1) the introduction, withdrawal, success and timing of business initiatives and strategies; (2) changes and volatility in political, economic or industry conditions, the interest rate environment, foreign exchange rates or financial and capital markets, which could result in changes in demand for products or services or in the value of assets under management; (3) the relative and absolute investment performance of BlackRock’s investment products; (4) BlackRock’s ability to develop new products and services that address client preferences; (5) the impact of increased competition; (6) the impact of recent or future acquisitions or divestitures, including the acquisitions of HPS (the “HPS Transaction”), Preqin (the “Preqin Transaction”) and the GIP Transaction (together with the HPS Transaction and the Preqin Transaction, the “Transactions”); (7) BlackRock’s ability to integrate acquired businesses successfully, including the Transactions; (8) risks related to the HPS Transaction and the Preqin Transaction, including delays in the expected closing date of the HPS Transaction or the Preqin Transaction, the possibility that either or both of the HPS Transaction or the Preqin Transaction does not close, including, but not limited to, due to the failure to satisfy the closing conditions; the possibility that expected synergies and value creation from the HPS Transaction or the Preqin Transaction will not be realized, or will not be realized within the expected time period; and the risk of impacts to business and operational relationships related to disruptions from the HPS Transaction or the Preqin Transaction; (9) the unfavorable resolution of legal proceedings; (10) the extent and timing of any share repurchases; (11) the impact, extent and timing of technological changes and the adequacy of intellectual property, data, information and cybersecurity protection; (12) the failure to effectively manage the development and use of artificial intelligence; (13) attempts to circumvent BlackRock’s operational control environment or the potential for human error in connection with BlackRock’s operational systems; (14) the impact of legislative and regulatory actions and reforms, regulatory, supervisory or enforcement actions of government agencies and governmental scrutiny relating to BlackRock; (15) changes in law and policy and uncertainty pending any such changes; (16) any failure to effectively manage conflicts of interest; (17) damage to BlackRock’s reputation; (18) increasing focus from stakeholders regarding environmental, social and governance matters; (19) geopolitical unrest, terrorist activities, civil or international hostilities, and other events outside BlackRock’s control, including wars, natural disasters and health crises, which may adversely affect the general economy, domestic and local financial and capital markets, specific industries or BlackRock; (20) climate-related risks to BlackRock's business, products, operations and clients; (21) the ability to attract, train and retain highly qualified and diverse professionals; (22) fluctuations in the carrying value of BlackRock’s economic investments; (23) the impact of changes to tax legislation, including income, payroll and transaction taxes, and taxation on products, which could affect the value proposition to clients and, generally, the tax position of BlackRock; (24) BlackRock’s success in negotiating distribution arrangements and maintaining distribution channels for its products; (25) the failure by key third-party providers of BlackRock to fulfill their obligations to BlackRock; (26) operational, technological and regulatory risks associated with BlackRock’s major technology partnerships; (27) any disruption to the operations of third parties whose functions are integral to BlackRock’s exchange-traded funds platform; (28) the impact of BlackRock electing to provide support to its products from time to time and any potential liabilities related to securities lending or other indemnification obligations; and (29) the impact of problems, instability or failure of other financial institutions or the failure or negative performance of products offered by other financial institutions. This presentation also includes non-GAAP financial measures. You can find our presentations on the most directly comparable GAAP financial measures calculated in accordance with GAAP and our reconciliations on page 14 of this earnings release supplement, our current earnings release dated January 15, 2025, and BlackRock’s other periodic reports, which are available on BlackRock’s website at www.blackrock.com.