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Section 1: 8-K (8-K)

blk-8k_20171011.htm

 

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): October 11, 2017

 

 

BLACKROCK, INC.

(Exact name of registrant as specified in its charter)

 

DELAWARE

(State or other jurisdiction

of incorporation)

001-33099

(Commission

File Number)

32-0174431

(IRS Employer

Identification No.)

 

 

55 East 52nd Street, New York, New York

 

10055

(Address of principal executive offices)

(Zip Code)

 

Registrant’s telephone number, including area code: (212) 810-5300

 

_________________________________________________________________________________________________

(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))

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 October 11, 2017, BlackRock, Inc. (the “Company”) reported results of operations for the three and nine months ended September 30, 2017.  A copy of the earnings release issued by the Company is attached as Exhibit 99.1. In addition, a copy of the Company’s Earnings Release Supplement for the quarter ended September 30, 2017 is being furnished as Exhibit 99.2 to this Form 8-K.

Item 9.01. Financial Statements and Exhibits

 

(d)  Exhibits

 

99.1

Earnings release dated October 11, 2017 issued by the Company

99.2

Third Quarter 2017 Earnings – Earnings Release Supplement

 

 

 

 



EXHIBIT INDEX

 

99.1

Earnings release dated October 11, 2017 issued by the Company

99.2

Third Quarter 2017 Earnings – Earnings Release Supplement

 

 



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.

 

 

 

 

BlackRock, Inc.

 

(Registrant)

 

 

 

 

 

By: /s/ Gary S. Shedlin          

Date: October 11, 2017

Senior Managing Director and

 

Chief Financial Officer

 

Gary S. Shedlin

 

 

 

(Back To Top)

Section 2: EX-99.1 (EARNINGS RELEASE DATED OCTOBER 11, 2017 ISSUED BY THE COMPANY)

blk-ex991_241.htm

Exhibit 99.1

 

 

 

 

 

 

 

Tom Wojcik, Investor Relations

 

Brian Beades, Media Relations

212.810.8127

 

212.810.5596

 

BlackRock Reports Third Quarter 2017 Diluted EPS of $5.78, or $5.92 as adjusted

 

 

$96 billion of total net inflows in the third quarter reflects continued strength of diversified business model

 

$76 billion of long-term net inflows, positive across client type, investment style and region

 

14% increase in revenue year-over-year driven by growth in base fees, performance fees and technology and risk management revenue

 

15% increase in operating income year-over-year reflects operating margin expansion

 

10% increase in diluted EPS (15% as adjusted) year-over-year

 

Consistent capital management with $275 million of quarterly share repurchases

FINANCIAL RESULTS

 

 

Q3

 

Q3

 

 

 

 

 

Q2

 

 

 

 

 

Nine Months Ended September 30,

 

 

 

 

(in millions, except per share data)

2017

 

2016

 

Change

 

 

2017

 

Change

 

 

2017

 

2016

 

Change

 

AUM

$

5,976,892

 

$

5,117,421

 

 

17

%

 

$

5,689,273

 

 

5

%

 

$

5,976,892

 

$

5,117,421

 

 

17

%

Total net flows

$

96,112

 

$

69,809

 

 

 

 

 

$

103,616

 

 

 

 

 

$

264,326

 

$

104,140

 

 

 

 

GAAP basis:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

$

3,233

 

$

2,837

 

 

14

%

 

$

2,965

 

 

9

%

 

$

9,022

 

$

8,265

 

 

9

%

Operating income

$

1,394

 

$

1,209

 

 

15

%

 

$

1,242

 

 

12

%

 

$

3,783

 

$

3,345

 

 

13

%

Operating margin

 

43.1

%

 

42.6

%

 

50

bps

 

 

41.9

%

 

120

bps

 

 

41.9

%

 

40.5

%

 

140

bps

Net income(1)

$

947

 

$

875

 

 

8

%

 

$

857

 

 

11

%

 

$

2,666

 

$

2,321

 

 

15

%

Diluted EPS

$

5.78

 

$

5.26

 

 

10

%

 

$

5.22

 

 

11

%

 

$

16.23

 

$

13.92

 

 

17

%

Weighted average diluted shares

 

163.8

 

 

166.3

 

 

(1

)%

 

 

164.1

 

 

-

%

 

 

164.3

 

 

166.8

 

 

(1

)%

As Adjusted:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income(2)

$

1,398

 

$

1,216

 

 

15

%

 

$

1,246

 

 

12

%

 

$

3,795

 

$

3,442

 

 

10

%

Operating margin(2)

 

45.0

%

 

44.8

%

 

20

bps

 

 

43.9

%

 

110

bps

 

 

43.9

%

 

43.5

%

 

40

bps

Net income(1) (2)

$

969

 

$

854

 

 

13

%

 

$

860

 

 

13

%

 

$

2,694

 

$

2,362

 

 

14

%

Diluted EPS(2)

$

5.92

 

$

5.14

 

 

15

%

 

$

5.24

 

 

13

%

 

$

16.40

 

$

14.16

 

 

16

%

(1)

Net income represents net income attributable to BlackRock, Inc.

(2)

See notes (1) through (3) to the Condensed Consolidated Statements of Income and Supplemental Information on pages 13 and 14 for more information on as adjusted items and the reconciliation to GAAP.

 

New York, October 11, 2017 — BlackRock, Inc. (NYSE: BLK) today reported financial results for the three and nine months ended September 30, 2017.

 

“BlackRock’s third quarter results reflect the continued growth of our global investment and technology platform and the trusted relationships we have built with our clients,” commented Laurence D. Fink, Chairman and CEO of BlackRock. “Our ability to create investment solutions from a broad range of products – spanning index to illiquid alternatives – combined with industry leading technology and risk management, is resonating with clients and driving more impactful interactions than ever before. As we deepen and expand our relationships with clients and partners, we recognize and embrace the growing responsibility we have on a daily basis to help them achieve their goals.

 

“Strong organic asset and base fee growth are a direct result of the investments we are making in our platform. We saw $96 billion of total net inflows in the third quarter. This brings year-to-date total organic growth to $264 billion, already surpassing our total flows for the full year of 2016.

 

iShares® third quarter net inflows of $52 billion were diversified across both core and non-core strategies. Our continued investment in the iShares franchise, including product innovation, investor education and digital distribution, is driving accelerated growth and increased market share.  During the third quarter, we again achieved the #1 market share of ETF flows globally, in both the United States and Europe, and in both equity and fixed income.

 

“In today’s markets, clients rely on both index and alpha-seeking building blocks to achieve their desired outcomes.  Strong investment performance drove third quarter net inflows of $6 billion in our active platform, led by fixed income and multi-asset offerings, which contributed to our strong organic base fee growth during the quarter.  

-1-


 

“Technology and risk management revenue, powered by Aladdin®, increased 15% year-over-year as institutions turn to BlackRock for our risk management and analytics capabilities.  As technology continues to enhance our alpha-generation and distribution capabilities, and continues to drive efficiencies in our operational infrastructure, it is becoming a larger focus of investment across the entire platform. Our technology investments are contributing significantly to both organic growth and revenue growth and will be critical to driving operating leverage over time.

 

“With regulation, technology and market forces transforming the ecosystem for asset and wealth managers globally, BlackRock is at the forefront of change in the industry.  As our focus remains on the long-term, we continue to purposefully and prudently invest in the future of our business, reinforcing our differentiated ability to serve clients and generate long-term value for shareholders.”

 

RESULTS BY CLIENT TYPE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2017

Q3 2017

 

Q3 2017

 

September 30, 2017

 

Q3 2017

 

AUM

Base fees(1)

(in millions), (unaudited)

Net flows

 

AUM

 

Base fees(1)

 

% of Total

% of Total

Retail

$

7,367

 

$

608,521

 

$

843

 

 

10

%

 

 

30

%

 

iShares ETFs

 

52,306

 

 

1,640,437

 

 

1,067

 

 

27

%

 

 

38

%

 

Institutional:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Active

 

155

 

 

1,105,224

 

 

489

 

 

18

%

 

 

18

%

 

Index

 

15,976

 

 

2,194,701

 

 

249

 

 

38

%

 

 

9

%

 

Total institutional

 

16,131

 

 

3,299,925

 

 

738

 

 

56

%

 

 

27

%

 

Long-term

 

75,804

 

 

5,548,883

 

 

2,648

 

 

93

%

 

 

95

%

 

Cash management

 

20,381

 

 

425,423

 

 

144

 

 

7

%

 

 

5

%

 

Advisory

 

(73

)

 

2,586

 

 

-

 

 

-

 

 

 

-

 

 

Total

$

96,112

 

$

5,976,892

 

$

2,792

 

 

100

%

 

 

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RESULTS BY PRODUCT TYPE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2017

Q3 2017

 

Q3 2017

 

September 30, 2017

 

Q3 2017

 

AUM

Base fees(1)

(in millions), (unaudited)

Net flows

 

AUM

 

Base fees(1)

 

% of Total

% of Total

Equity

$

11,935

 

$

3,172,465

 

$

1,427

 

 

53

%

 

 

51

%

 

Fixed income

 

59,549

 

 

1,788,420

 

 

740

 

 

30

%

 

 

27

%

 

Multi-asset

 

4,334

 

 

457,027

 

 

289

 

 

8

%

 

 

10

%

 

Alternatives

 

(14

)

 

130,971

 

 

192

 

 

2

%

 

 

7

%

 

Long-term

 

75,804

 

 

5,548,883

 

 

2,648

 

 

93

%

 

 

95

%

 

Cash management

 

20,381

 

 

425,423

 

 

144

 

 

7

%

 

 

5

%

 

Advisory

 

(73

)

 

2,586

 

 

-

 

 

-

 

 

 

-

 

 

Total

$

96,112

 

$

5,976,892

 

$

2,792

 

 

100

%

 

 

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RESULTS BY INVESTMENT STYLE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2017

Q3 2017

 

Q3 2017

 

September 30, 2017

 

Q3 2017

 

AUM

Base fees(1)

(in millions), (unaudited)

Net flows

 

AUM

 

Base fees(1)

 

% of Total

% of Total

Active

$

5,796

 

$

1,645,352

 

$

1,318

 

 

28

%

 

 

47

%

 

Index and iShares ETFs

 

70,008

 

 

3,903,531

 

 

1,330

 

 

65

%

 

 

48

%

 

Long-term

 

75,804

 

 

5,548,883

 

 

2,648

 

 

93

%

 

 

95

%

 

Cash management

 

20,381

 

 

425,423

 

 

144

 

 

7

%

 

 

5

%

 

Advisory

 

(73

)

 

2,586

 

 

-

 

 

-

 

 

 

-

 

 

Total

$

96,112

 

$

5,976,892

 

$

2,792

 

 

100

%

 

 

100

%

 

(1)

Base fees include investment advisory, administration fees and securities lending revenue.


-2-


BUSINESS HIGHLIGHTS

 

Long-term net inflows were positive across all major regions, with net inflows of $42.3 billion, $23.6 billion and $9.9 billion from clients in the Americas, EMEA and Asia-Pacific, respectively. At September 30, 2017, BlackRock managed 64% of its long-term AUM for clients in the Americas, 28% for clients in EMEA and 8% for clients in Asia-Pacific.

The Company’s net flows by client type for the third quarter of 2017 are presented below.

 

Retail long-term net inflows of $7.4 billion reflected net inflows of $3.7 billion in the United States and $3.7 billion internationally. Fixed income net inflows of $4.6 billion were diversified across our top-performing active platform, led by net inflows into unconstrained, municipal and emerging market debt categories. Equity net inflows of $1.7 billion reflected inflows into index mutual funds. Multi-asset net inflows of $1.0 billion were largely due to inflows into the Multi-asset Income fund family, partially offset by outflows from world allocation strategies.

 

iShares ETFs long-term net inflows of $52.3 billion reflected strength in iShares Core, precision exposure and financial instrument ETFs. Equity net inflows of $33.1 billion were driven by both U.S. and international equity market exposures. Fixed income net inflows of $17.5 billion reflected inflows into treasury, investment grade corporate and broad fixed income funds. Commodities iShares generated $1.5 billion of net inflows.

 

Institutional active long-term net inflows of $0.2 billion were led by multi-asset net inflows of $3.5 billion, reflecting ongoing demand for the LifePath® target-date series and factors strategies, and fixed income net inflows of $0.5 billion. Equity net outflows of $3.3 billion were driven by fundamental and scientific active equities. Alternatives had net outflows of $0.5 billion (including $0.6 billion return of capital).

 

Institutional index long-term net inflows of $16.0 billion included fixed income net inflows of $36.9 billion, driven by demand for liability-driven solutions, partially offset by equity net outflows of $19.6 billion.

 

Cash management AUM increased 6% to $425.4 billion, driven by $20.4 billion of net inflows.

 

INVESTMENT PERFORMANCE AT SEPTEMBER 30, 2017 (1)  

 

One-year period

 

Three-year period

 

Five-year period

 

  Fixed income:

 

 

 

 

 

 

 

 

 

  Actively managed AUM above benchmark or peer median

 

 

 

 

 

 

 

 

 

Taxable

 

78%

 

 

78%

 

 

89%

 

Tax-exempt

 

55%

 

 

51%

 

 

53%

 

  Index AUM within or above applicable tolerance

 

97%

 

 

94%

 

 

98%

 

  Equity:

 

 

 

 

 

 

 

 

 

  Actively managed AUM above benchmark or peer median

 

 

 

 

 

 

 

 

 

Fundamental

 

59%

 

 

80%

 

 

69%

 

Scientific

 

86%

 

 

89%

 

 

91%

 

  Index AUM within or above applicable tolerance

 

97%

 

 

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, and Chief Financial Officer, Gary S. Shedlin, will host a teleconference call for investors and analysts on Wednesday, October 11, 2017 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 92702706). 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 12:30 p.m. (Eastern Time) on Wednesday, October 11, 2017 and ending at midnight on Wednesday, October 25, 2017. 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 92702706. To access the webcast, please visit the investor relations section of www.blackrock.com.


-3-


About BlackRock

BlackRock helps investors build better financial futures.  As a fiduciary to our clients, we provide the investment and technology solutions they need when planning for their most important goals. As of September 30, 2017, the firm manages approximately $5.977 trillion in assets on behalf of investors worldwide.  For additional information on BlackRock, please visit www.blackrock.com | Twitter: @blackrock | Blog: www.blackrockblog.com | LinkedIn: www.linkedin.com/company/blackrock

-4-


CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION

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

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months

 

 

 

 

 

 

Three Months Ended

 

 

 

 

 

 

Ended

 

 

 

 

 

 

September 30,

 

 

 

 

 

 

June 30,

 

 

 

 

 

 

2017

 

 

2016

 

 

Change

 

 

2017

 

 

Change

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment advisory, administration fees and

  securities lending revenue

$

2,792

 

 

$

2,546

 

 

$

246

 

 

$

2,675

 

 

$

117

 

Investment advisory performance fees

 

191

 

 

 

58

 

 

 

133

 

 

 

48

 

 

 

143

 

Technology and risk management revenue(a)

 

175

 

 

 

152

 

 

 

23

 

 

 

164

 

 

 

11

 

Distribution fees

 

5

 

 

 

10

 

 

 

(5

)

 

 

5

 

 

 

-

 

Advisory and other revenue(a)

 

70

 

 

 

71

 

 

 

(1

)

 

 

73

 

 

 

(3

)

Total revenue

 

3,233

 

 

 

2,837

 

 

 

396

 

 

 

2,965

 

 

 

268

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee compensation and benefits

 

1,088

 

 

 

969

 

 

 

119

 

 

 

999

 

 

 

89

 

Distribution and servicing costs

 

123

 

 

 

114

 

 

 

9

 

 

 

121

 

 

 

2

 

Amortization of deferred sales commissions

 

4

 

 

 

8

 

 

 

(4

)

 

 

4

 

 

 

-

 

Direct fund expense

 

234

 

 

 

200

 

 

 

34

 

 

 

224

 

 

 

10

 

General and administration

 

363

 

 

 

312

 

 

 

51

 

 

 

350

 

 

 

13

 

Amortization of intangible assets

 

27

 

 

 

25

 

 

2

 

 

 

25

 

 

 

2

 

Total expense

 

1,839

 

 

 

1,628

 

 

 

211

 

 

 

1,723

 

 

 

116

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

1,394

 

 

 

1,209

 

 

 

185

 

 

 

1,242

 

 

 

152

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonoperating income (expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net gain (loss) on investments

 

41

 

 

 

31

 

 

 

10

 

 

 

36

 

 

 

5

 

Interest and dividend income

 

15

 

 

 

22

 

 

 

(7

)

 

 

13

 

 

 

2

 

Interest expense

 

(46

)

 

 

(52

)

 

 

6

 

 

 

(48

)

 

 

2

 

Total nonoperating income (expense)

 

10

 

 

 

1

 

 

 

9

 

 

 

1

 

 

 

9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

1,404

 

 

 

1,210

 

 

 

194

 

 

 

1,243

 

 

 

161

 

Income tax expense

 

445

 

 

 

333

 

 

 

112

 

 

 

376

 

 

 

69

 

Net income

 

959

 

 

 

877

 

 

 

82

 

 

 

867

 

 

 

92

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to noncontrolling interests

 

12

 

 

 

2

 

 

 

10

 

 

 

10

 

 

 

2

 

Net income attributable to BlackRock, Inc.

$

947

 

 

$

875

 

 

$

72

 

 

$

857

 

 

$

90

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

161,872,716

 

 

 

164,129,214

 

 

 

(2,256,498

)

 

 

162,502,465

 

 

 

(629,749

)

Diluted

 

163,773,546

 

 

 

166,256,598

 

 

 

(2,483,052

)

 

 

164,149,861

 

 

 

(376,315

)

Earnings per share attributable to BlackRock, Inc.

   common stockholders (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

5.85

 

 

$

5.33

 

 

$

0.52

 

 

$

5.27

 

 

$

0.58

 

Diluted

$

5.78

 

 

$

5.26

 

 

$

0.52

 

 

$

5.22

 

 

$

0.56

 

Cash dividends declared and paid per share

$

2.50

 

 

$

2.29

 

 

$

0.21

 

 

$

2.50

 

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AUM (end of period)

$

5,976,892

 

 

$

5,117,421

 

 

$

859,471

 

 

$

5,689,273

 

 

$

287,619

 

Shares outstanding (end of period)

 

161,597,770

 

 

 

163,858,070

 

 

 

(2,260,300

)

 

 

162,207,216

 

 

 

(609,446

)

GAAP:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin

 

43.1

%

 

 

42.6

%

 

 

50

bps

 

 

41.9

%

 

 

120

bps

Effective tax rate

 

32.0

%

 

 

27.6

%

 

 

440

bps

 

 

30.5

%

 

 

150

bps

As adjusted:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (1)

$

1,398

 

 

$

1,216

 

 

$

182

 

 

$

1,246

 

 

$

152

 

Operating margin (1)

 

45.0

%

 

 

44.8

%

 

 

20

bps

 

 

43.9

%

 

 

110

bps

Nonoperating income (expense), less net income

  (loss) attributable to noncontrolling interests

$

(2

)

 

$

(1

)

 

$

(1

)

 

$

(9

)

 

$

7

 

Net income attributable to BlackRock, Inc. (2)

$

969

 

 

$

854

 

 

$

115

 

 

$

860

 

 

$

109

 

Diluted earnings attributable to BlackRock, Inc.

     common stockholders per share (2) (3)

$

5.92

 

 

$

5.14

 

 

$

0.78

 

 

$

5.24

 

 

$

0.68

 

Effective tax rate

 

30.6

%

 

 

29.7

%

 

 

90

bps

 

 

30.5

%

 

 

10

bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See pages 13-14 for the reconciliation to GAAP and notes (1) through (3) for more information on as adjusted items.

 

 

(a) Beginning with the first quarter of 2017, Aladdin revenue previously reported within “BlackRock Solutions® and advisory” has been presented within “Technology and risk management revenue” on the condensed consolidated statements of income.  The remaining previously reported “BlackRock Solutions and advisory” revenue is currently reported as part of “Advisory and other revenue.” Under the historical presentation, BlackRock Solutions and advisory revenue would have totaled $200 million for the three months ended September 30, 2017. The prior period amount reported for BlackRock Solutions and advisory of $174 million for the three months ended September 30, 2016 has been reclassified to conform to the current presentation.  See page 10 for further information.

-5-


CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION

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

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended

 

 

 

 

 

 

September 30,

 

 

 

 

 

 

2017

 

 

2016

 

 

Change

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

Investment advisory, administration fees and securities

      lending revenue

$

7,997

 

 

$

7,394

 

 

$

603

 

Investment advisory performance fees

 

309

 

 

 

166

 

 

 

143

 

Technology and risk management revenue(a)

 

497

 

 

 

439

 

 

 

58

 

Distribution fees

 

17

 

 

 

32

 

 

 

(15

)

Advisory and other revenue(a)

 

202

 

 

 

234

 

 

 

(32

)

Total revenue

 

9,022

 

 

 

8,265

 

 

 

757