BlackRock Inc. has announced 20% growth in its fourth-quarter earnings.
The New York company, which is majority owned by PNC Financial Services Group Inc. in Pittsburgh, said the profit growth came from higher investment income and a tax gain that partly offset several charges.
Assets under management rose 10%, to $341.8 billion at Dec. 31 from $309.4 billion a year earlier. BlackRock said it pulled in $12.7 billion of new business in the fourth quarter. Global bond assets rose 57% during the year, while domestic equities rose 35% and alternative investments 18%.
Revenue grew 17%, to $188.7 million, and profit was up 20.2%, to $49.8 million, or 75 cents per share, beating the average expectation of Wall Street analysts by 2 cents.
The tax gain added 14 cents a share to earnings, mostly offsetting 17 cents in charges for employee benefits, underwriting fees for a new closed-end fund, and professional fees for the pending purchase of Boston-based State Street Research and Management Co.
