Strong inflows and strategic acquisitions power BlackRock’s 2024 results

ByInvestment Club

Overview

BlackRock reported its 4Q 2024 financial results on Wednesday (15th January), highlighting significant growth and record breaking figures. The company’s AUM hit its highest level ever, at $11.6t, while their total net inflows for the fiscal year also hit a record amount at $641bn (incl. $281bn in 4Q).

BlackRock CEO, Larry Fink, commented: “Clients entrusted BlackRock with a record $641 billion of net inflows in 2024, including $281 billion in the fourth quarter for two consecutive record flows quarters. 2024 was also a milestone year for strategic acquisitions grounded in client service, technology and scale.”

He also commented on the revenue growth versus 2023: “Our operating model delivered exceptional performance in a year of meaningful change. We crossed $20 billion of annual revenue, up 14% from 2023. As adjusted operating income grew by 23%, and our industry-leading margin of 44.5% was up 280 basis points.”

Key Financial Highlights

  • Asset Under Management (AUM) of $11.6t (up +15% YoY)
  • Total net flows of $641.4bn (up +122% YoY), of which $281.4bn in 4Q (up +194% YoY)
  • Revenues of $20.4bn (up +14% YoY), of which $5.7bn in 4Q (up +23% YoY)
  • Operating income of $7.6bn (up +21% YoY), of which $2.1bn in 4Q (up +31% YoY)
  • Net income of $6.4bn (up +16% YoY), of which $1.7bn in 4Q (up +21% YoY)
  • Diluted EPS of $42.01 (up +15% YoY), of which $10.63 in 4Q (up +16% YoY)

Net Flows Highlights

  • Long-term net flows of $489bn ($201bn in 4Q), of which:
    • $24bn in Retail ($5bn in 4Q)
    • $390bn in ETFs ($143bn in 4Q)
    • $74bn in Institutional ($53bn in 4Q)
  • Cash management net flows of $153bn ($81bn in 4Q)

AUM Breakdown by Product Type

  • $6,310bn in Equity (55% of the total of $11,551bn)
  • $2,905bn in Fixed Income (25% of the total of $11,551bn)
  • $992bn in Multi-asset (8% of the total of $11,551bn)
  • $421bn in Alternatives (4% of the total of $11,551bn), of which:
    • $212bn in Private markets (2% of the total of $11,551bn)
    • $76bn in Liquid alternatives (1% of the total of $11,551bn)
    • $133bn in Currency & commodities (1% of the total of $11,551bn)
  • $920bn in Cash management (8% of the total of $11,551bn)

Author: János-Levente Bereczki

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