BlackRock Reports Full Year 2023 Diluted EPS of $36.51, or $37.77 as Adjusted
BlackRock Announces Agreement to Acquire Global Infrastructure Partners (“GIP”) — Creating a World Leading Infrastructure Investment Platform
NEW YORK--(BUSINESS WIRE)--January 12, 2024--
BlackRock, Inc. (NYSE: BLK) today reported financial results for the three months and year ended December 31, 2023.
BlackRock’s acquisition of GIP will create a combined infrastructure platform of over $150 billion*, well positioned to meet fast-growing investor demand
$10 trillion in AUM following $289 billion of full year net inflows, including $96 billion in the fourth quarter
Flat full year revenue primarily driven by the negative impact of markets on average AUM, partially offset by higher technology services revenue
Restructuring charge of $61 million from initiative to reorganize specific platforms, primarily Aladdin and illiquid alternative investments, to stay ahead of client needs, excluded from as adjusted results
2% decrease in full year operating income
7% increase in full year diluted EPS also reflects significantly higher nonoperating income, partially offset by a higher effective tax rate in the current year
$4.5 billion returned to shareholders in 2023, including $1.5 billion of share repurchases
2% increase in quarterly cash dividend to $5.10 per share approved by Board of Directors
Laurence D. Fink, Chairman and CEO:
“BlackRock delivered differentiated organic growth and operating margin through historically challenging market and industry conditions in 2022 and 2023. As we’ve seen before, when investors were ready to put money back to work, they did it with BlackRock. Clients entrusted us with $289 billion of net inflows in 2023, including $96 billion in the fourth quarter. We enter 2024 with strong momentum — $10 trillion in AUM, accelerating flows, and an organization positioned for the future.
“Today, we are announcing two transformational changes in anticipation of the evolution we see ahead for asset management and the capital markets. The strategic re-architecture of our organization will simplify and improve how we work and deliver for clients. And our acquisition of GIP will propel our leadership in the fast-growing market for hard-asset infrastructure.
“Our clients’ needs have been our compass. Listening to them and applying that to our vision for the future of our industry drove our innovation in Aladdin, and how we led a revolution that made iShares ETFs ubiquitous.
“We always viewed ETFs as a technology, a technology that facilitated investing. And just as our Aladdin technology has become core to asset management, so too have ETFs. That’s why we believe embedding our ETF and Index business across the entire firm will accelerate the growth of iShares and every investment strategy at BlackRock.
“The combination of BlackRock infrastructure with GIP will make us the second largest private markets infrastructure manager with over $150 billion in total AUM, providing clients — especially those saving for retirement — with the high-coupon, inflation-protected, long-duration investments they need.
“We are incredibly excited about this next chapter in BlackRock’s history. This ambitious transformation of our firm positions us better than ever. Our clients, shareholders and employees will be its biggest beneficiaries.”
FINANCIAL RESULTS NET FLOW HIGHLIGHTS(1)
Full
(in millions, Q4 Q4 Full Year Q4 Year
---------------------------
except per share
data) 2023 2022 2023 2022 (in billions) 2023 2023
Long-term net
AUM $10,008,995 $8,594,485 $10,008,995 $8,594,485 flows: $ 63 $ 209
% change 16% 16%
Average AUM $ 9,384,929 $8,417,215 $ 9,220,700 $8,948,570 By region:
% change 11% 3% Americas $ 54 $ 138
Total net flows $ 95,647 $ 113,725 $ 288,695 $ 306,570 EMEA 8 27
APAC 1 44
GAAP basis:
-------------------- ----------- ---------- ----------- ----------
By client
Revenue $ 4,631 $ 4,337 $ 17,859 $ 17,873 type:
% change 7% -%
Operating income $ 1,585 $ 1,427 $ 6,275 $ 6,385 Retail: $ (9) $ (8
% change 11% (2)% US (6) (5
Operating margin 34.2% 32.9% 35.1% 35.7% International (3) (4
Net income(1) $ 1,375 $ 1,259 $ 5,502 $ 5,178
% change 9% 6% ETFs: $ 88 $ 186
Diluted EPS $ 9.15 $ 8.29 $ 36.51 $ 33.97 Core equity 32 83
% change 10% 7% Strategic 28 104
Weighted-average
diluted shares 150.2 151.8 150.7 152.4 Precision 28 (1
% change (1)% (1)%
Institutional: $(16) $ 32
As Adjusted(2) : Active 8 87
-------------------- ----------- ---------- ----------- ----------
Operating income $ 1,716 $ 1,577 $ 6,593 $ 6,711 Index (24) (55
% change 9% (2)%
Operating margin 41.6% 41.2% 41.7% 42.8%
Cash
management net
Net income(1) $ 1,451 $ 1,356 $ 5,692 $ 5,391 flows $ 33 $ 79
% change 7% 6%
Diluted EPS $ 9.66 $ 8.93 $ 37.77 $ 35.36
Total net
% change 8% 7% flows $ 96 $ 289
_________________________ _________________________
(1) Net income represents net income attributable to BlackRock, Inc. (2) See (1) Totals may not add due to
pages 10 through 12 for the reconciliation to GAAP and notes (1) through (3) to rounding.
the condensed consolidated statements of income and supplemental information for
more information on as adjusted items.
* Combined infrastructure platform represents client assets (AUM and non-fee paying committed capital) of BlackRock
and GIP as of December 31, 2023 and September 30, 2023, respectively.
BUSINESS RESULTS
Q4 2023
Base
Q4 2023 fees(1)
December
31, and
Base fees(1) 2023 securities
December and lending
Q4 2023 31, 2023 securities AUM revenue
(in millions), Net lending % of
(unaudited) flows AUM revenue Total % of Total
RESULTS BY
CLIENT TYPE
Retail $ (8,959) $ 929,697 $ 993 9% 28%
ETFs 87,721 3,499,299 1,458 35% 40%
Institutional:
Active 7,511 1,912,673 691 19% 19%
Index (23,576) 2,902,489 223 29% 6%
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Total
institutional (16,065) 4,815,162 914 48% 25%
------- ---------- --- ------- -------- ----------
Long-term 62,697 9,244,158 3,365 92% 93%
Cash management 32,950 764,837 240 8% 7%
------- ---------- --- ------- -------- ----------
Total $ 95,647 $10,008,995 $ 3,605 100% 100%
======= ========== === ======= ======== ==========
RESULTS BY
INVESTMENT
STYLE
Active $ (5,762) $ 2,621,178 $ 1,631 26% 45%
Index and ETFs 68,459 6,622,980 1,734 66% 48%
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