BlackRock second-quarter profit misses estimates
(Reuters) - BlackRock Inc (BLK.N), the world’s largest asset manager, missed analysts’ estimates for quarterly profit on Friday, as investment advisory and securities lending revenue fell and costs rose.
Its institutional funds added $87.36 billion in the second quarter, up from $29.12 billion in the first quarter.
Investors poured more money into BlackRock’s actively managed funds aimed at beating the market over the low-fee passive-investment products.
BlackRock said its iShares-branded ETFs took in $36.10 billion of new money, up from $30.69 billion in the preceding quarter.
Total revenue fell 2.2% to $3.52 billion from a year earlier.
The New York-based company's net income attributable to BlackRock fell to $1 billion, or $6.41 per share, in the quarter ended June 30 from $1.07 billion, or $6.62 per share, a year earlier. (bit.ly/2Ya6YZj)
Analysts had expected a profit of $6.50 per share, according to IBES data from Refinitiv.
Total expenses rose nearly 4% to $2.25 billion.
The company ended the quarter with $6.84 trillion in assets under management, up from $6.30 trillion a year earlier.
Shares of the company were up marginally before the opening bell.
Reporting by C Nivedita and Bharath Manjesh in Bengaluru; Editing by Maju Samuel