BlackRock (BLK) Q4 2020 earnings summary

Executive summary

• Global investment and technology platform ended 2020 with $8.68T AUM, up from $7.43T; AUM rose through $390.8B net inflows, $746.3B market appreciation and $109.9B FX impact.

• FY revenue growth and strong markets lifted adjusted operating income and EPS, while reported margin declined amid higher expenses, including a one-time charitable contribution.

Financial highlights

• Revenue was $16.205B, up 11% YoY; GAAP operating income was $5.695B, net income attributable was $4.932B and diluted EPS was $31.85.

• Adjusted operating income was $6.284B, up $733M; adjusted margin was 44.9%, up 120 bps, and adjusted diluted EPS was $33.82, up 19% YoY.

• Base fees reached $12.639B, up $862M; performance fees were $1.104B, up $654M, with ~60% of the increase from one hedge-fund strategy.

• Technology services revenue was $1.139B, up 17%; higher Aladdin revenue and the eFront acquisition contributed to growth.

• GAAP operating margin fell to 35.1% from 38.2%; expenses rose 17% to $10.510B, including $589M for the charitable contribution and higher compensation and product-launch costs.

Outlook and guidance

• Long-term priorities: differentiated organic growth, scale-driven margin expansion and consistent shareholder returns, balanced with investment for future growth and discretionary expense management.

• ETF and illiquid-alternative demand remained strategic growth opportunities; technology investment and holistic portfolio and risk solutions were expected to benefit from industry consolidation and regulatory needs.

• COVID-19 effects, market movements, policy changes and potential regulation remained uncertain and could affect AUM, fees, client demand and operating conditions.