In its annual earnings statement, BlackRock credits advisory and administration fees as well as securities lending revenue for an increase in Q3 revenue.
Third quarter 2011 revenue of $2.2 billion increased $133 million, or 6 per cent, from $2.1 billion in the same quarter the year previous, while third quarter net income of $595 million is an eight per cent lift from a year ago but a drop of four per cent quarter on quarter.
"Investment advisory, administration fees and securities lending revenue of $1.9 billion in third quarter 2011 increased $155 million, or nine per cent, from $1.8 billion in third quarter 2010. The increase in fees reflected growth in average long-term AUM which included the benefit of net new business, partially offset by a decline in fees from cash management products due to lower average AUM," wrote BlackRock.
Long-term AUM of around $3.0 trillion decreased $308.3 billion during the quarter, largely driven by market and foreign exchange declines of $298.7 billion. Cash management AUM of $244.7 billion declined one per cent.
