BlackRock profit jumps as resilient markets boost fees

BlackRock posted a jump in third-quarter profit on Wednesday, as the world’s largest asset manager raked in higher fees from managing client funds.

Shares of the firm rose 3.1% in premarket trading.

Its profit rose to $1.66 billion, or $10.57 per share, in the three months ended September 30, compared with $1.32 billion, or $8.43 per share, a year earlier.

BlackRock’s assets under management — which determine a large chunk of its earnings — rose to $15.49 trillion, from $13.46 trillion a year earlier.

The benchmark S&P 500, which is trading close to its all-time highs, continued its steady ascent over the quarter and investors continue to demonstrate their willingness to allocate assets to investment firms such as BlackRock.

Asset managers have navigated an increasingly volatile market environment this year, as shifting trade policies and the impact from surging oil prices due to the Iran war have kept investors on edge, but US markets have remained resilient, buoyed by an unrelenting rally in AI-focused stocks.

Even as markets have remained sturdy, the combination of surging bond yields and the expectation that the Federal Reserve’s recent interest rate hike marks the beginning of a tightening cycle has called into question whether the rally can be sustained.

Higher yields over a sustained period can put pressure on markets as investors rotate capital into safe-haven assets, locking in better risk-adjusted returns.