EX-99.1 2 blk-ex991_6.htm EARNINGS RELEASE DATED APRIL 13, 2022 blk-ex991_6.htm

Exhibit 99.1

v

 

 

 

 

INVESTOR RELATIONS:

Caroline Rodda      212.810.3442

MEDIA RELATIONS:

Brian Beades      212.810.5596

 

 

BlackRock Reports First Quarter 2022 Diluted EPS of $9.35, or $9.52 as adjusted

 

New York, April 13, 2022  –  BlackRock, Inc. (NYSE: BLK) today reported financial results for the three months ended March 31, 2022.

 

 

$114 billion of quarterly long-term net inflows reflect strength of broad-based platform with positive flows across all product types, investment styles and regions

$86 billion of quarterly total net inflows also reflect seasonal outflows from cash management

7% increase in revenue year-over-year driven by strong organic growth and 11% growth in technology services revenue, partially offset by lower performance fees

14% increase in operating income year-over-year includes the impact of $178 million of fund launch costs in the first quarter of 2021

20% increase in diluted EPS (18% as adjusted) year-over-year also reflects a lower effective tax rate and a lower diluted share count, partially offset by lower nonoperating income, in the current quarter

$500 million of share repurchases in the quarter and 18% increase in quarterly cash dividend to $4.88 per share

 

Laurence D. Fink, Chairman and CEO:

“BlackRock generated $114 billion of long-term net inflows in the first quarter, with positive flows across all product types, investment styles and regions, demonstrating the breadth of our asset management platform. Our ETFs delivered $56 billion of net inflows, as clients increasingly use them to efficiently allocate capital, access liquidity and manage risk. Active net inflows of $20 billion were led by LifePath target-date strategies and strong demand for alternatives.

Aladdin’s comprehensive value proposition is resonating more than ever and becoming a key component of the whole portfolio solutions we deliver for clients – technology services saw 13% ACV growth.

“BlackRock is increasingly the partner of choice globally as clients look to build deeper and more comprehensive relationships. We announced another significant client mandate during the quarter that exemplifies our One BlackRock approach – bringing together investment expertise, operational excellence and world-class technology.  I am incredibly excited by the opportunities ahead of us and believe BlackRock is well-positioned to continue generating durable, differentiated organic growth and delivering value for all of our stakeholders.

“As the world continues to face geopolitical and economic uncertainty, our investments over the years to build BlackRock’s all-weather platform position us well to advise our clients and help them pursue their long-term financial goals.”

 

FINANCIAL RESULTS

 

Q1

 

 

Q1

 

(in millions, except per share data)

2022

 

 

2021

 

AUM

$

9,569,513

 

 

$

9,007,411

 

% change

 

6

%

 

 

 

 

Average AUM

$

9,669,202

 

 

$

8,782,351

 

% change

 

10

%

 

 

 

 

Total net flows

$

86,364

 

 

$

171,643

 

 

 

 

 

 

 

 

 

GAAP basis:

 

 

 

 

 

 

 

Revenue

$

4,699

 

 

$

4,398

 

% change

 

7

%

 

 

 

 

Operating income

$

1,764

 

 

$

1,545

 

% change

 

14

%

 

 

 

 

Operating margin

 

37.5

%

 

 

35.1

%

Net income(1)

$

1,436

 

 

$

1,199

 

% change

 

20

%

 

 

 

 

Diluted EPS

$

9.35

 

 

$

7.77

 

% change

 

20

%

 

 

 

 

Weighted-average diluted shares

 

153.5

 

 

 

154.3

 

% change

 

-

%

 

 

 

 

 

 

 

 

 

 

 

 

As Adjusted:

 

 

 

 

 

 

 

Operating income(2)

$

1,822

 

 

$

1,599

 

% change

 

14

%

 

 

 

 

Operating margin(2)

 

44.2

%

 

 

45.8

%

Net income(1) (2)

$

1,462

 

 

$

1,240

 

% change

 

18

%

 

 

 

 

Diluted EPS(2)

$

9.52

 

 

$

8.04

 

% change

 

18

%

 

 

 

 

(1)

Net income represents net income attributable to BlackRock, Inc.

(2)

See notes (1) and (2) to the condensed consolidated statements of income and supplemental information on pages 9 through 13 for more information on as adjusted items and the reconciliation to GAAP. Beginning in the first quarter of 2022, BlackRock updated the definitions of operating income, as adjusted, operating margin, as adjusted, and net income attributable to BlackRock, Inc., as adjusted.  Such measures have been recast for 2021 to reflect the inclusion of such new adjustments.

NET FLOW HIGHLIGHTS

 

 

 

Q1

 

(in billions)

2022

LTM(1)

Long-term net flows:

$

114

 

 

$

440

 

 

 

 

 

 

 

 

 

 

 

 

 

By region:

 

 

 

 

 

 

 

 

 

 

 

 

Americas

$

28

 

 

$

226

 

 

 

EMEA

 

45

 

 

 

125

 

 

 

APAC

 

41

 

 

 

89

 

 

 

 

 

 

 

 

 

 

 

 

 

By client type:

 

 

 

 

 

 

 

 

 

 

 

 

Retail:

$

10

 

 

$

76

 

 

 

 

US

 

8

 

 

 

45

 

 

 

 

International

 

2

 

 

 

31

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ETFs:

$

56

 

 

$

293

 

 

 

 

Core equity

 

33

 

 

 

114

 

 

 

 

Strategic

 

15

 

 

 

134

 

 

 

 

Precision

 

8

 

 

 

45

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Institutional:

$

47

 

 

$

71

 

 

 

 

Active

 

16

 

 

 

169

 

 

 

 

Index

 

31

 

 

 

(98

)

 

 

 

 

 

 

 

 

 

 

 

 

Cash management net flows

$

(27

)

 

$

28

 

 

 

 

 

 

 

 

 

 

 

 

 

Advisory net flows

$

-

 

 

$

(13

)

 

 

 

 

 

 

 

 

 

 

 

 

Total net flows

$

86

 

 

$

454

 

 

(1)

Amounts represent last twelve months net flows from April 1, 2021 to March 31, 2022.

 

 

1

 


 

 

BUSINESS RESULTS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1 2022

 

 

 

 

 

 

 

 

 

Q1 2022

 

 

 

 

Base fees (1)

 

 

 

 

 

 

 

 

 

Base fees (1)

 

March 31, 2022

 

and securities

 

 

 

Q1 2022

 

March 31, 2022

 

and securities

 

AUM

 

lending revenue

 

 

(in millions), (unaudited)

Net flows

 

AUM

 

lending revenue

 

% of Total

 

% of Total

 

 

RESULTS BY CLIENT TYPE

Retail

$

10,164

 

$

989,123

 

$

1,224

 

 

10

%

 

32

%

 

ETFs

 

56,207

 

 

3,150,496

 

 

1,501

 

 

33

%

 

39

%

 

Institutional:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Active

 

16,398

 

 

1,676,167

 

 

675

 

 

17

%

 

18

%

 

Index

 

30,975

 

 

3,019,763

 

 

263

 

 

32

%

 

7

%

 

Total institutional

 

47,373

 

 

4,695,930

 

 

938

 

 

49

%

 

25

%

 

Long-term

 

113,744

 

 

8,835,549

 

 

3,663

 

 

92

%

 

96

%

 

Cash management

 

(27,095

)

 

724,939

 

 

170

 

 

8

%

 

4

%

 

Advisory

 

(285

)

 

9,025

 

 

-

 

 

-

 

 

-

 

 

Total

$

86,364

 

$

9,569,513

 

$

3,833

 

 

100

%

 

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RESULTS BY INVESTMENT STYLE

Active

$

20,040

 

$

2,479,139

 

$

1,851

 

 

26

%

 

49

%

 

Index and ETFs

 

93,704

 

 

6,356,410

 

 

1,812

 

 

66

%

 

47

%

 

Long-term

 

113,744

 

 

8,835,549

 

 

3,663

 

 

92

%

 

96

%

 

Cash management

 

(27,095

)

 

724,939

 

 

170

 

 

8

%

 

4

%

 

Advisory

 

(285

)

 

9,025

 

 

-

 

 

-

 

 

-

 

 

Total

$

86,364

 

$

9,569,513

 

$

3,833

 

 

100

%

 

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RESULTS BY PRODUCT TYPE

Equity

$

76,024

 

$

5,119,044

 

$

1,961

 

 

53

%

 

52

%

 

Fixed income

 

7,522

 

 

2,645,871

 

 

941

 

 

28

%

 

25

%

 

Multi-asset

 

17,672

 

 

785,181

 

 

359

 

 

8

%

 

9

%

 

Alternatives

 

12,526

 

 

285,453

 

 

402

 

 

3

%

 

10

%

 

Long-term

 

113,744

 

 

8,835,549

 

 

3,663

 

 

92

%

 

96

%

 

Cash management

 

(27,095

)

 

724,939

 

 

170

 

 

8

%

 

4

%

 

Advisory

 

(285

)

 

9,025

 

 

-

 

 

-

 

 

-

 

 

Total

$

86,364

 

$

9,569,513

 

$

3,833

 

 

100

%

 

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Base fees include investment advisory and administration fees.

INVESTMENT PERFORMANCE AT March 31, 2022(1)

 

 

One-year period

Three-year period

Five-year period

Fixed income:

 

 

 

Actively managed AUM above benchmark or peer median

 

 

 

Taxable

53%

86%

90%

Tax-exempt

68%

60%

74%

Index AUM within or above applicable tolerance

95%

97%

95%

Equity:

 

 

 

Actively managed AUM above benchmark or peer median

 

 

 

Fundamental

40%

81%

83%

Systematic

58%

66%

87%

Index AUM within or above applicable tolerance

95%

98%

99%

 

(1)

Past performance is not indicative of future results. The performance information shown is based on preliminary available data. Please refer to page 15 for performance disclosure detail.

TELECONFERENCE, WEBCAST AND PRESENTATION INFORMATION

Chairman and Chief Executive Officer, Laurence D. Fink, President, Robert S. Kapito, and Chief Financial Officer, Gary S. Shedlin, will host a teleconference call for investors and analysts on Wednesday, April 13, 2022 at 8:30 a.m. (Eastern Time). Members of the public who are interested in participating in the teleconference should dial, from the United States, (800) 374-0176, or from outside the United States, (706) 679-8281, shortly before 8:30 a.m. and reference the BlackRock Conference Call (ID Number 4390466). A live, listen-only webcast will also be available via the investor relations section of www.blackrock.com.

Both the teleconference and webcast will be available for replay by 11:30 a.m. (Eastern Time) on Wednesday, April 13, 2022 and ending at midnight on Wednesday, April 27, 2022. To access the replay of the teleconference, callers from the United States should dial (855) 859-2056 and callers from outside the United States should dial (404) 537-3406 and enter the Conference ID Number 4390466. To access 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 | Twitter: @blackrock | LinkedIn: www.linkedin.com/company/blackrock.

2

 


 

 

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION

(in millions, except shares and per share data), (unaudited)

 

 

 

 

 

 

 

 

 

Three Months

 

 

 

 

 

 

Three Months Ended

 

 

 

 

 

 

Ended

 

 

 

 

 

 

March 31,

 

 

 

 

 

 

December 31,

 

 

 

 

 

 

2022

 

 

2021

 

 

Change

 

 

2021

 

 

Change

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment advisory, administration fees and

  securities lending revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment advisory and administration fees

$

3,695

 

 

$

3,465

 

 

$

230

 

 

$

3,832

 

 

$

(137

)

Securities lending revenue

 

138

 

 

 

127

 

 

 

11

 

 

 

136

 

 

 

2

 

Total investment advisory, administration fees and

  securities lending revenue

 

3,833

 

 

 

3,592

 

 

 

241

 

 

 

3,968

 

 

 

(135

)

Investment advisory performance fees

 

98

 

 

 

129

 

 

 

(31

)

 

 

329

 

 

 

(231

)

Technology services revenue

 

341

 

 

 

306

 

 

 

35

 

 

 

339

 

 

 

2

 

Distribution fees

 

381

 

 

 

340

 

 

 

41

 

 

 

411

 

 

 

(30

)

Advisory and other revenue

 

46

 

 

 

31

 

 

 

15

 

 

 

59

 

 

 

(13

)

Total revenue

 

4,699

 

 

 

4,398

 

 

 

301

 

 

 

5,106

 

 

 

(407

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee compensation and benefits

 

1,498

 

 

 

1,409

 

 

 

89

 

 

 

1,559

 

 

 

(61

)

Distribution and servicing costs

 

574

 

 

 

505

 

 

 

69

 

 

 

587

 

 

 

(13

)

Direct fund expense

 

329

 

 

 

320

 

 

 

9

 

 

 

319

 

 

 

10

 

General and administration expense

 

496

 

 

 

585

 

 

 

(89

)

 

 

564

 

 

 

(68

)

Amortization of intangible assets

 

38

 

 

 

34

 

 

 

4

 

 

 

38

 

 

 

-

 

Total expense

 

2,935

 

 

 

2,853

 

 

 

82

 

 

 

3,067

 

 

 

(132

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

1,764

 

 

 

1,545

 

 

 

219

 

 

 

2,039

 

 

 

(275

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonoperating income (expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net gain (loss) on investments

 

(102

)

 

 

82

 

 

 

(184

)

 

 

75

 

 

 

(177

)

Interest and dividend income

 

18

 

 

 

19

 

 

 

(1

)

 

 

46

 

 

 

(28

)

Interest expense

 

(54

)

 

 

(55

)

 

 

1

 

 

 

(50

)

 

 

(4

)

Total nonoperating income (expense)

 

(138

)

 

 

46

 

 

 

(184

)

 

 

71

 

 

 

(209

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

1,626

 

 

 

1,591

 

 

 

35

 

 

 

2,110

 

 

 

(484

)

Income tax expense

 

263

 

 

 

318

 

 

 

(55

)

 

 

478

 

 

 

(215

)

Net income

 

1,363

 

 

 

1,273

 

 

 

90

 

 

 

1,632

 

 

 

(269

)

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to noncontrolling

  interests

 

(73

)

 

 

74

 

 

 

(147

)

 

 

(11

)

 

 

(62

)

Net income attributable to BlackRock, Inc.

$

1,436

 

 

$

1,199

 

 

$

237

 

 

$

1,643

 

 

$

(207

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

151,732,845

 

 

 

152,567,453

 

 

 

(834,608

)

 

 

151,822,226

 

 

 

(89,381

)

Diluted

 

153,530,395

 

 

 

154,301,812

 

 

 

(771,417

)

 

 

154,564,198

 

 

 

(1,033,803

)

Earnings per share attributable to BlackRock, Inc.

   common stockholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

9.46

 

 

$

7.86

 

 

$

1.60

 

 

$

10.82

 

 

$

(1.36

)

Diluted

$

9.35

 

 

$

7.77

 

 

$

1.58

 

 

$

10.63

 

 

$

(1.28

)

Cash dividends declared and paid per share

$

4.88

 

 

$

4.13

 

 

$

0.75

 

 

$

4.13

 

 

$

0.75

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AUM (end of period)

$

9,569,513

 

 

$

9,007,411

 

 

$

562,102

 

 

$

10,010,143

 

 

$

(440,630

)

Shares outstanding (end of period)

 

151,725,643

 

 

 

152,635,930

 

 

 

(910,287

)

 

 

151,684,491

 

 

 

41,152

 

GAAP:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin

 

37.5

%

 

 

35.1

%

 

 

240

  bps

 

 

39.9

%

 

 

(240

) bps

Effective tax rate

 

15.5

%

 

 

20.9

%

 

 

(540

) bps

 

 

22.6

%

 

 

(710

) bps

As adjusted:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (1)

$

1,822

 

 

$

1,599

 

 

$

223

 

 

$

2,107

 

 

$

(285

)

Operating margin (1)

 

44.2

%

 

 

45.8

%

 

 

(160

) bps

 

 

46.6

%

 

 

(240

) bps

Nonoperating income (expense), less net income

     (loss) attributable to noncontrolling interests

$

(65

)

 

$

(28

)

 

$

(37

)

 

$

82

 

 

$

(147

)

Net income attributable to BlackRock, Inc. (2)

$

1,462

 

 

$

1,240

 

 

$

222

 

 

$

1,650

 

 

$

(188

)

Diluted earnings attributable to BlackRock, Inc.

     common stockholders per share (2)

$

9.52

 

 

$

8.04

 

 

$

1.48

 

 

$

10.68

 

 

$

(1.16

)

Effective tax rate

 

16.8

%

 

 

20.9

%

 

 

(410

) bps

 

 

24.6

%

 

 

(780

) bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See pages 9 through 13 for the reconciliation to GAAP and notes (1) and (2) to the condensed consolidated statements of income and supplemental information for more information on as adjusted items. Beginning in the first quarter of 2022, BlackRock updated the definitions of operating income, as adjusted, operating margin, as adjusted, and net income attributable to BlackRock, Inc., as adjusted.  Such measures have been recast for 2021 to reflect the inclusion of such new adjustments.

 

3

 


 

 

ASSETS UNDER MANAGEMENT

(in millions), (unaudited)

Current Quarter Component Changes by Client Type and Product Type

 

 

 

 

 

 

Net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

inflows

 

 

Market

 

 

 

 

 

 

March 31,

 

 

 

 

 

 

2021

 

 

(outflows)

 

 

change

 

 

FX impact (1)

 

 

2022

 

 

Average AUM (2)

 

Retail:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

$

471,937

 

 

$

6,202

 

 

$

(29,379

)

 

$

(2,717

)

 

$

446,043

 

 

$

448,767

 

Fixed income

 

365,306

 

 

 

(1,896

)

 

 

(18,752

)

 

 

(946

)

 

 

343,712

 

 

 

353,889

 

Multi-asset

 

155,461

 

 

 

2,978

 

 

 

(8,685

)

 

 

(274

)

 

 

149,480

 

 

 

151,053

 

Alternatives

 

47,349

 

 

 

2,880

 

 

 

(196

)

 

 

(145

)

 

 

49,888

 

 

 

48,585

 

Retail subtotal

 

1,040,053

 

 

 

10,164

 

 

 

(57,012

)

 

 

(4,082

)

 

 

989,123

 

 

 

1,002,294

 

ETFs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

2,447,248

 

 

 

41,170

 

 

 

(135,834

)

 

 

(2,163

)

 

 

2,350,421

 

 

 

2,356,531

 

Fixed income

 

745,373

 

 

 

8,150

 

 

 

(39,128

)

 

 

(1,628

)

 

 

712,767

 

 

 

723,773

 

Multi-asset

 

9,119

 

 

 

69

 

 

 

(491

)

 

 

19

 

 

 

8,716

 

 

 

8,747

 

Alternatives

 

65,614

 

 

 

6,818

 

 

 

6,173

 

 

 

(13

)

 

 

78,592

 

 

 

70,614

 

ETFs subtotal

 

3,267,354

 

 

 

56,207