BlackRock AUM surges to $11.58T despite dip in net income

The world’s biggest money manager, BlackRock, saw its assets rise to a record high in the first quarter despite volatility in financial markets fueled by US President Donald Trump’s tax proposals.

New York: Investment giant BlackRock Inc. reported a notable increase in its assets under management (AUM) to $11.58 trillion, up from $10.47 trillion in the same quarter last year and $11.55 trillion at the end of 2024, according to financial results released on Friday.

The asset surge occurred despite a volatile first quarter marked by market turbulence and economic uncertainty, particularly surrounding U.S. trade policies and tariff announcements under the Trump administration.

Earnings Decline Amid Rising Costs

BlackRock’s net income slipped to $1.51 billion, or $9.64 per share, from $1.57 billion, or $10.48 per share, a year ago. However, when adjusted for acquisition-related expenses and other items, earnings per share rose to $11.30, marking a 15% year-on-year increase.

Operating expenses increased significantly to $3.58 billion, up from $3.04 billion in the previous year.

CEO Larry Fink: “Uncertainty Dominates Conversations”

Chairman and CEO Larry Fink acknowledged that market anxiety and economic unpredictability are dominating client discussions.

“We’ve seen periods like this before — the financial crisis, COVID, surging inflation in 2022. And we emerged stronger by staying connected with our clients,” said Fink, hinting at BlackRock’s long-term resilience.

The S&P 500 index fell 4.6% during the first quarter — its worst Q1 performance since 2022.

Inflows Continue Despite Volatility

BlackRock recorded long-term net inflows of $83 billion, up from $76 billion a year ago.

• Fixed income products led the pack with $37.7 billion in inflows, although slightly down from $41.7 billion last year.
• Equity product inflows rose to $19.3 billion, compared to $18.4 billion a year earlier.

According to Edward Jones analyst Kyle Sanders, BlackRock’s strong showing across bond funds, equities, alternative assets, and cash products highlights its broad market reach and scale advantages.

Outlook: Positioning for Structural Change

Despite headwinds, BlackRock appears poised to benefit from long-term trends in client demand for diversified investment solutions, particularly in a shifting macroeconomic landscape.

“Periods of uncertainty are when we’ve historically made our biggest leaps,” said Fink, signaling confidence in the firm’s ability to navigate ongoing economic and geopolitical turbulence.