BlackRock's Q2 profits rise as AUM tops $12trn

(Sharecast News) - American investment titan BlackRock has reported a surge in assets under management in its second quarter, bolstered by the recent run-up in Wall Street stocks and strong inflows, as profits came in ahead of forecasts. The company announced on Tuesday that AUM totalled $12.52trn in the three months to 30 June, up 18% over the $10.65trn reported at the end of the first half in 2024.

Quarterly net inflows totalled $68bn, mainly reflecting a single institutional client's $52bn lower-fee index partial redemption, the company said.

Revenues totalled $5.42bn, up 13% over last year, reflecting the positive impact of markets, organic base fee growth and fees related to the acquisition of Global Infrastructure Management in October, as well as higher technology services and subscription revenue.

Adjusted operating income rose 12% to $2.10bn, while adjusted diluted earnings per share improved 16% to $12.05, smashing the $10.78 consensus estimate.

"Our expanding client relationships are resonating in higher, more diversified organic base fee growth," said chair and chief executive Larry Fink.

Fink highlighted the completion of BlackRock's acquisition of HPS Investment Partners at the start of this month, which added $165bn of client AUM and $118bn of fee-paying AUM.

"Our recent closing of HPS will help us build even more with clients as we head into our seasonally strongest second half of the year. These are just the early days in our next phase of even stronger growth," he said.