BlackRock securities lending revenue up in Q4 2011
23 January 2012 New York
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BlackRock operating income in the fourth quarter of 2011 decreased 14 per cent to $808 million year-on-year on the back of a drop in investment fees, offset by a lift in securities lending revenues.
The firm cited a reduction in investment advisory and administration fees as one of the primary reasons for an 11 per cent drop y-o-y in overall revenues, which ended 2011 at $2.2 billion.
The decline in revenue reflected market driven reduction in equity assets under management (AUM), offset by $15 million higher securities lending fees due to an increase in average balances of international securities on loan, the company said.
Fees and securities lending returns were at $1.9 billion in the fourth quarter, which dropped $88 million, or 5 per cent, from $2.0 billion in the same period last year. The decrease in fees reflected lower average AUM.
AUM dropped 1 per cent to $3.5 billion from $3.6 billion year-on-year, however, there was a gain of 5 per cent quarter-on-quarter from $3.3 billion.
The firm cited a reduction in investment advisory and administration fees as one of the primary reasons for an 11 per cent drop y-o-y in overall revenues, which ended 2011 at $2.2 billion.
The decline in revenue reflected market driven reduction in equity assets under management (AUM), offset by $15 million higher securities lending fees due to an increase in average balances of international securities on loan, the company said.
Fees and securities lending returns were at $1.9 billion in the fourth quarter, which dropped $88 million, or 5 per cent, from $2.0 billion in the same period last year. The decrease in fees reflected lower average AUM.
AUM dropped 1 per cent to $3.5 billion from $3.6 billion year-on-year, however, there was a gain of 5 per cent quarter-on-quarter from $3.3 billion.
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