BlackRock’s second-quarter profit fell 30% as jitters in global markets discouraged investors, shrinking fee income at the world’s biggest asset manager.
Specifically, BlackRock reported adjusted earnings of $1.12 billion, or $7.36 per share, for the quarter ended June 30, from $1.61 billion, or $10.45 per share, a year earlier, down by 30%.
BlackRock’s second-quarter revenue fell 6% to $4.53 billion.
Analysts on average had expected the asset manager to post earnings of $7.90 per share, according to IBES data from Refinitiv.
The reduction in sizes is attributed to the removal of fiscal support provided by the Federal Reserve during the coronavirus pandemic, which “cut” the risk appetite of investors, who have turned this year to “safe havens” and to fixed income products, with the markets stocks to retreat amid growing recession fears, as reported by Reuters.
Also, the current macroeconomic environment, with rising concerns about inflation, geopolitical turmoil and interest rate hikes, has intensified the pressures on fund managers, much of whose business is dependent on market conditions.
BlackRock stock was down 0.80% in premarket trading on Friday.
Source: Capital
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