Even the largest asset manager is suffering from the market turbulence.
(Photo: Reuters)
new York The world’s largest wealth manager Blackrock suffered a 30 percent drop in profits in the second quarter due to falling fee income as a result of the market turmoil. Adjusted earnings fell to $1.12 billion in the April-June period from $1.61 billion in the same period last year, Blackrock said on Friday.
Earnings per share fell to $7.36 from $10.45 a year earlier. That was below analysts’ expectations, which had expected an average of $7.90.
“Investors are dealing with high inflation, rising interest rates and the worst start to the year for stocks and bonds in half a century,” said CEO Larry Fink. Investors therefore shied away from the risk and held back.
Blackrock’s assets under management fell 11 percent to $8.49 trillion.
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