BlackRock’s Q2 profit surges 21% as investors return to the market after COVID-19

BlackRock Inc. (NYSE: BLK) said on Friday that its profit in the second quarter came in 21% higher as its cash management services and fixed-income funds received more money from investors in Q2. Earlier this week, BlackRock was reported to have voted against management at 53 companies over climate concerns.

Shares of the company opened about 2% up on Friday and jumped another 2% in the next hours. At £468.47 per share, BlackRock is currently 15% up year to date in the stock market after recovering from a low of £260.71 per share in March. Learn more about how to choose winning stocks.

BlackRock prints a 7% growth in assets under management

The world’s biggest asset manager highlighted investors to have poured £47.99 billion of new money into its fixed-income funds in the second quarter. BlackRock’s cash management services, on the other hand, saw a £19.27 billion of boost to net inflows in Q2. Regions Financial also published its quarterly report on Friday that highlighted the company to have swung to a loss in Q2.

Financial markets showed early signs of recovery in June after an aggressive selloff that started in March due to the Coronavirus pandemic that has so far infected more than 3 million people in the United States and caused over 141,000 deaths. Consequently, the American global investment management corporation boasted an increase in assets under management.

In the comparable quarter of last year, BlackRock had £5.45 trillion of assets under management. In its report on Friday, it valued assets under management at £5.83 trillion in the second quarter that represents an about 7% growth on a year over year basis.

BlackRock registers a net income of £960 million in Q2

The New York-headquartered firm registered its net income in Q2 at £960 million that translated to £6.25 per share. In the same quarter last year, its net income was reported at a lower £800 million or £5.10 per share.

The investment firm topped Wall Street estimates of £5.49 of earnings per share in the recent quarter. In terms of revenue, it recorded £2.91 billion in the three months that ended on 30^th June. CEO Lawrence Fink of BlackRock commented on the report on Friday and said:

“Clients are turning to BlackRock more than ever before as they face increasing uncertainty about the future, and we are bringing together the entirety of our differentiated platform to help them.”

At the time of writing, the American global investment management corporation is valued at £72.16 billion and has a price to earnings ratio of 21.78.