BlackRock : Earnings Release

INVESTOR RELATIONS:Samantha Tortora212.810.5397

MEDIA RELATIONS:

Brian Beades212.810.5596

New York, October 16, 2018 - BlackRock, Inc. (NYSE: BLK) today reported financial results for the three and nine months ended September 30, 2018.

BlackRock Reports Third Quarter 2018 Diluted EPS of $7.54, or $7.52 as adjusted

$6.4 trillion of AUM, up 8%year-over-year, including $28 billion of net AUM added from strategic transactions

$11 billion of quarterly long-term net inflows, led byiShares®, active multi-asset and illiquid alternatives

2% growth in revenueyear-over-year driven by 4% base fee growth and 18% technology services revenue growth, partially offset by lower performance fees

1% increase in operating incomeyear-over-year also reflects $42 million of transaction-related expense

31% diluted EPS growth (27% as adjusted)driven by higher nonoperating income and a lower effective tax rate

$500 millionof share repurchases in the current quarter and$3.13dividend per share

FINANCIAL RESULTS

GAAP basis:

Revenue Operating income Operating margin Net income(1)Diluted EPSWeighted averagediluted shares

$ $ $

96,112	Americas:	$	18.2 billion
EMEA:	$	(9.7) billion
APAC:	$	2.1 billion

3,576

$1,396$39.0%

3,5081,38939.6%

2% 1%(60) bps

$ $

1,216

$7.54$

9445.76

29 % 31 %

161.4

163.8

(1

)%

As Adjusted:

Operating income(2)

Operating margin(2)

Net income(1)(2)

$

1,400$44.2%

1,39345.1%

1%(90) bps

$ $

1,214$7.52$

9665.90

• 26 %

  Diluted EPS(2)

• 27 %

*

Results for 2017 were recast to reflect the adoption of the new revenue recognition standard. For further information, refer to the Current Report on Form 8-K furnished on March 22, 2018.

• (1)Net income represents net income attributable to BlackRock, Inc.

(2)

See notes (1) through (3) to the condensed consolidated statements of income and supplemental information on pages 11 and 12 for more information on as adjusted items and the reconciliation to GAAP.

Laurence D. Fink, Chairman and CEO:

"BlackRock's third quarter results highlight the resilience of our differentiated platform and our ability to generate organic growth, even in the face of significant industry headwinds. Our holistic, client-centric approach brings together our global product breadth, portfolio construction capabilities, digital tools and industry-leading technology, and positions us well to deliver long-term value to clients and shareholders.

"BlackRock generated $11 billion of long-term net inflows in the third quarter, despite more than $30 billion of institutional non-ETF index equity outflows that resulted from de-risking associated with ongoing divergent monetary policy and geopolitical uncertainty. Over the last twelve months, total net inflows of $177 billion reflect continued growth in key areas of our business, including iShares, multi-asset solutions, illiquid alternatives and Aladdin.

"We continue to build and evolve our business in order to stay ahead of clients' needs and industry disruption, and completed several strategic transactions during the quarter to accelerate future growth. We are more confident than ever before in our ability to be a strategic partner to clients as a result of our broad array of integrated investment and technology offerings."

NET FLOW HIGHLIGHTS

Long-term net inflows of $10.6 billion by region:Long-term net inflows of $10.6 billion by client type:

Retail:

U.S.: International:

iShares:

Core: Non-Core:

Institutional:

• $ 1.7 billion

• $ 2.5 billion

• $ (0.8) billion

• $ 33.7 billion

• $ 20.3 billion

• $ 13.4 billion

• $ (24.8) billion

Index: Active:

• $ (23.6) billion

• $ (1.2) billion

Cash management net outflows of $(14.6) billion

BUSINESS RESULTS

September 30, 2018		Q3 2018
Q3 2018		September 30, 2018		Q3 2018		AUM		Base fees(1)
(in millions), (unaudited)	Net flows		AUM		Base fees(1)		% of Total		% of Total
RESULTS BY CLIENT TYPE
Retail	$	1,697	663,261	860	10	%	30	%
iSharesETFs	33,673	1,853,188	1,113	29	%	39	%
Institutional:
Active	(1,204	1,130,921	504	18	%	17	%
Index	(23,554	2,351,785	252	36	%	9	%
Total institutional	(24,758	3,482,706	756	54	%	26	%
Long-term	10,612	5,999,155	2,729	93	%	95	%
Cash management	(14,570	443,185	154	7	%	5	%
Advisory	853	1,760	-	-	-
Total	$	(3,105	6,444,100	2,883	100	%	100	%
RESULTS BY INVESTMENT STYLE
Active	$	(1,109	1,713,576	1,346	26	%	47	%
Index andiSharesETFs	11,721	4,285,579	1,383	67	%	48	%
Long-term	10,612	5,999,155	2,729	93	%	95	%
Cash management	(14,570	443,185	154	7	%	5	%
Advisory	853	1,760	-	-	-
Total	$	(3,105	6,444,100	2,883	100	%	100	%
RESULTS BY PRODUCT TYPE
Equity	$	(17,264	3,482,687	1,459	54	%	52	%
Fixed income	22,908	1,883,806	763	29	%	26	%
Multi-asset	3,228	492,810	298	8	%	10	%
Alternatives	1,740	139,852	209	2	%	7	%
Long-term	10,612	5,999,155	2,729	93	%	95	%
Cash management	(14,570	443,185	154	7	%	5	%
Advisory	853	1,760	-	-	-
Total	$	(3,105	6,444,100	2,883	100	%	100	%

(1)Base fees include investment advisory, administration fees andsecurities lending revenue.

INVESTMENT PERFORMANCE AT SEPTEMBER 30, 2018(1)

One-year period	Three-year period	Five-year period
Fixed income:
Actively managed AUM above benchmark or peer median
Taxable	66%	72%	84%
Tax-exempt	74%	74%	78%
Index AUM within or above applicable tolerance	98%	99%	100%
Equity:
Actively managed AUM above benchmark or peer median
Fundamental	66%	70%	80%
Systematic	74%	85%	92%
Index AUM within or above applicable tolerance	97%	99%	98%

(1)Past performance is not indicative of future results. The performance information shown is based on preliminary available data. Please refer to page 13 for performance disclosure detail.

TELECONFERENCE, WEBCAST AND PRESENTATION INFORMATION

Chairman and Chief Executive Officer, Laurence D. Fink, President, Robert S. Kapito, and Chief Financial Officer, Gary S. Shedlin, will host a teleconference call for investors and analysts on Tuesday, October 16, 2018 at 8:30 a.m. (Eastern Time). Members of the public who are interested in participating in the teleconference should dial, from the United States, [phone], or from outside the United States, [phone], shortly before 8:30 a.m. and reference the BlackRock Conference Call (ID Number 4488387). A live, listen-only webcast will also be available via the investor relations section ofwww.blackrock.com.

Both the teleconference and webcast will be available for replay by 12:30 p.m. (Eastern Time) on Tuesday, October 16, 2018 and ending at midnight on Tuesday, October 30, 2018. To access the replay of the teleconference, callers from the United States should dial [phone] and callers from outside the United States should dial [phone] and enter the Conference ID Number 4488387. To access the webcast, please visit the investor relations section ofwww.blackrock.com.

ABOUT BLACKROCK

BlackRock helps investors build better financial futures. As a fiduciary to our clients, we provide the investment and technology solutions they need when planning for their most important goals. As of September 30, 2018, the firm managed approximately $6.44 trillion in assets on behalf of investors worldwide. For additional information on BlackRock, please visitwww.blackrock.com| Twitter:@blackrock| Blog:www.blackrockblog.com| LinkedIn:www.linkedin.com/company/blackrock.

Three Months
Three Months Ended									Ended
September 30,									June 30,
2018			2017*			Change			2018		Change
Revenue
Investment advisory, administration fees andsecurities lending revenue	$	2,883	$	2,781	$	102	$	2,944	$	(61
Investment advisory performance fees	151	191	(40	91	60
Technology services revenue	200	169	31	198	2
Distribution fees	279	298	(19	294	(15
Advisory and other revenue	63	69	(6	78	(15
Total revenue	3,576	3,508	68	3,605	(29
Expense
Employee compensation and benefits	1,097	1,087	10	1,082	15
Distribution and servicing costs	408	419	(11	415	(7
Direct fund expense	249	231	18	264	(15
General and administration	413	355	58	393	20
Amortization of intangible assets	13	27	(14	11	2
Total expense	2,180	2,119	61	2,165	15
Operating income	1,396	1,389	7	1,440	(44
Nonoperating income (expense)
Net gain (loss) on investments	50	41	9	3	47
Interest and dividend income	29	15	14	19	10
Interest expense	(46	(46	-	(46	-
Total nonoperating income (expense)	33	10	23	(24	57
Income before income taxes	1,429	1,399	30	1,416	13
Income tax expense (benefit)	226	443	(217	338	(112
Net income	1,203	956	247	1,078	125
Less:
Net income (loss) attributable to noncontrollinginterests	(13	12	(25	5	(18
Net income attributable to BlackRock, Inc.	$	1,216	$	944	$	272	$	1,073	$	143
Weighted-average common shares outstanding
Basic	160,141,506	161,872,716	(1,731,210	160,980,960	(839,454
Diluted	161,378,217	163,773,546	(2,395,329	162,161,937	(783,720
Earnings per share attributable to BlackRock, Inc. common stockholders (3)
Basic	$	7.59	$	5.83	$	1.76	$	6.67	$	0.92
Diluted	$	7.54	$	5.76	$	1.78	$	6.62	$	0.92
Cash dividends declared and paid per share	$	3.13	$	2.50	$	0.63	$	2.88	$	0.25
Supplemental information:
AUM (end of period)	$	6,444,100	$	5,976,892	$	467,208	$	6,299,706	$	144,394
Shares outstanding (end of period)	159,804,364	161,597,770	(1,793,406	160,779,596	(975,232
GAAP:
Operating margin	39.0	%	39.6	%	(60	bps	39.9	%	(90	bps
Effective tax rate	15.7	%	31.9	%	(1,620	bps	24.0	%	(830	bps
As adjusted:
Operating income (1)	$	1,400	$	1,393	$	7	$	1,443	$	(43
Operating margin (1)	44.2	%	45.1	%	(90	bps	45.2	%	(100	bps
Nonoperating income (expense), less net income (loss) attributable to noncontrolling interests	$	46	$	(2	$	48	$	(29	$	75
Net income attributable to BlackRock, Inc. (2)	$	1,214	$	966	$	248	$	1,080	$	134
Diluted earnings attributable to BlackRock, Inc.
common stockholders per share (2) (3)	$	7.52	$	5.90	$	1.62	$	6.66	$	0.86
Effective tax rate	16.0	%	30.6	%	(1,460	bps	23.7	%	(770	bps

• ) bps

• ) bps

• ) bps

) bps

See pages 11-12 for the reconciliation to GAAP and notes (1) through (3) for more information on as adjusted items.

*Results for 2017 were recast to reflect the adoption of the new revenue recognition standard. For further information, refer to the Current Report on Form 8-K furnished on March 22, 2018.

Nine Months Ended

September 30,2018

2017*

Change

Revenue

Investment advisory, administration fees and securities

lending revenue	$	$	803
Investment advisory performance fees	312	309	3
Technology services revenue	582	481	101
Distribution fees	884	877	7
Advisory and other revenue	212	198	14
Total revenue	10,764	9,836	928
Expense
Employee compensation and benefits	3,300	3,106	194
Distribution and servicing costs	1,255	1,230	25
Direct fund expense	774	658	116
General and administration	1,189	996	193
Amortization of intangible assets	35	77	(42 )
Total expense	6,553	6,067	486
Operating income	4,211	3,769	442
Nonoperating income (expense)
Net gain (loss) on investments	68	128	(60 )
Interest and dividend income	63	35	28
Interest expense	(138 )	(159 )	21
Total nonoperating income (expense)	(7)	4	(11 )
Income before income taxes	4,204	3,773	431
Income tax expense	829	1,085	(256)
Net income	3,375	2,688	687
Less:
Net income (loss) attributable to noncontrolling interests	(3 )	31	(34 )

$

8,774

7,971

$

Net income attributable to BlackRock, Inc.

3,378

$

2,657

$

721

Weighted-average common shares outstanding

Basic

Diluted

160,786,768162,140,879

162,459,737164,289,042

(1,672,969)(2,148,163)

Earnings per share attributable to BlackRock, Inc.

common stockholders (3)

Basic

Diluted

Cash dividends declared and paid per share

$ $ $

21.01

$

16.35

$

20.83

$

16.17

$

8.89

$

7.50

$

4.664.661.39

Supplemental information:

AUM (end of period)

$

Shares outstanding (end of period)

$159,804,364

6,444,100

$ 161,597,770

5,976,892

467,208(1,793,406)

GAAP:

Operating margin

Effective tax rateAs adjusted:

39.1%19.7%

38.3%29.0%

80 (930)bps bps

Operating income (1)

$

4,221

Operating margin (1)

$44.5%

3,781

$43.9%

440

60

bps

Nonoperating income (expense), less net income (loss)

attributable to noncontrolling interests

Net income attributable to BlackRock, Inc. (2)

Diluted earnings attributable to BlackRock, Inc.

common stockholders per share (2) (3)

$ $ $

Effective tax rate

20.88

$	23
$	701
$	$	4.54
19.7%	28.5%	(880) bps

(4 )

(27 )

$

3,386

2,685

$

16.34

See pages 11-12 for the reconciliation to GAAP and notes (1) through (3) for more information on as adjusted items.

*Results for 2017 were recast to reflect the adoption of the new revenue recognition standard. For further information, refer to the Current Report on Form 8-K furnished on March 22, 2018.

ASSETS UNDER MANAGEMENT

(in millions), (unaudited)

Current Quarter Component Changes by Client Type and Product Type
Net		Acquisitions
June 30,			inflows		and		Market			September 30,
2018			(outflows)		dispositions(1)		change			FX impact(2)			2018			Average AUM(3)
Retail:
Equity	$	232,617	$	(2,889	$	2,137	$	6,362	$	(683	$	237,544	$	235,327
Fixed income	266,987	3,141	14,070	(1,066	(253	282,879	271,896
Multi-asset	119,299	789	2,519	1,799	(102	124,304	121,557
Alternatives	17,922	656	7	(22	(29	18,534	18,164
Retail subtotal	636,825	1,697	18,733	7,073	(1,067	663,261	646,944
iSharesETFs:
Equity	1,346,288	21,215	-	46,621	(199	1,413,925	1,388,881
Fixed income	401,731	12,914	-	(2,094	(208	412,343	408,384
Multi-asset	3,767	(9	-	55	1	3,814	3,803
Alternatives	24,979	(447	-	(1,435	9	23,106	24,152
iSharesETFs subtotal	1,776,765	33,673	-	43,147	(397	1,853,188	1,825,220
Institutional:
Active:
Equity	134,986	(4,745	(4,296	3,564	(534	128,975	131,834
Fixed income	550,444	(398	2,417	722	(1,594	551,591	552,157
Multi-asset	350,545	2,471	(1,593	5,932	(468	356,887	353,321
Alternatives	87,413	1,468	4,995	(164	(244	93,468	90,308
Active subtotal	1,123,388	(1,204	1,523	10,054	(2,840	1,130,921	1,127,620
Index:
Equity	1,652,589	(30,845	4,749	80,833	(5,083	1,702,243	1,689,785
Fixed income	639,447	7,251	2,051	(6,660	(5,096	636,993	640,079
Multi-asset	8,055	(23	(243	110	(94	7,805	7,914
Alternatives	4,673	63	1	39	(32	4,744	4,680
Index subtotal	2,304,764	(23,554	6,558	74,322	(10,305	2,351,785	2,342,458
Institutional subtotal	3,428,152	(24,758	8,081	84,376	(13,145	3,482,706	3,470,078
Long-term	5,841,742	10,612	26,814	134,596	(14,609	5,999,155	5,942,242
Cash management	457,054	(14,570	686	630	(615	443,185	455,852
Advisory(4)	910	853	-	(10	7	1,760	1,308
Total	$	6,299,706	$	(3,105	$	27,500	$	135,216	$	(15,217	$	6,444,100	$	6,399,402
Current Quarter Component Changes by Investment Style and Product Type (Long-term)
Net		Acquisitions
June 30,			inflows		and		Market			September 30,
2018			(outflows)		dispositions(1)		change			FX impact(2)			2018			Average AUM(3)
Active:
Equity	$	304,098	$	(7,737	$	(2,160	$	7,729	$	(881	$	301,049	$	302,744
Fixed income	803,515	1,244	16,487	(199	(1,715	819,332	809,629
Multi-asset	469,845	3,260	926	7,731	(570	481,192	474,878
Alternatives	105,336	2,124	5,002	(186	(273	112,003	108,472
Active subtotal	1,682,794	(1,109	20,255	15,075	(3,439	1,713,576	1,695,723
Index andiSharesETFs:
iSharesETFs:
Equity	1,346,288	21,215	-	46,621	(199	1,413,925	1,388,881
Fixed income	401,731	12,914	-	(2,094	(208	412,343	408,384
Multi-asset	3,767	(9	-	55	1	3,814	3,803
Alternatives	24,979	(447	-	(1,435	9	23,106	24,152
iSharesETFs subtotal	1,776,765	33,673	-	43,147	(397	1,853,188	1,825,220
Non-ETF Index:
Equity	1,716,094	(30,742	4,750	83,030	(5,419	1,767,713	1,754,202
Fixed income	653,363	8,750	2,051	(6,805	(5,228	652,131	654,503
Multi-asset	8,054	(23	(243	110	(94	7,804	7,914
Alternatives	4,672	63	1	39	(32	4,743	4,680
Non-ETF Index subtotal	2,382,183	(21,952	6,559	76,374	(10,773	2,432,391	2,421,299
Index &iSharesETFs subtotal	4,158,948	11,721	6,559	119,521	(11,170	4,285,579	4,246,519
Long-term	$	5,841,742	$	10,612	$	26,814	$	134,596	$	(14,609	$	5,999,155	$	5,942,242
Current Quarter Component Changes by Product Type (Long-term)
Net		Acquisitions
June 30,			inflows		and		Market			September 30,
2018			(outflows)		dispositions(1)		change			FX impact(2)			2018			Average AUM(3)
Equity	$	3,366,480	$	(17,264	$	2,590	$	137,380	$	(6,499	$	3,482,687	$	3,445,827
Fixed income	1,858,609	22,908	18,538	(9,098	(7,151	1,883,806	1,872,516
Multi-asset	481,666	3,228	683	7,896	(663	492,810	486,595
Alternatives:
Core	102,768	2,092	4,995	(162	(228	109,465	105,918
Currency and commodities(5)	32,219	(352	8	(1,420	(68	30,387	31,386
Alternatives subtotal	134,987	1,740	5,003	(1,582	(296	139,852	137,304
Long-term	$	5,841,742	$	10,612	$	26,814	$	134,596	$	(14,609	$	5,999,155	$	5,942,242

• (1)Amounts include net AUM from the acquisitions of Tennenbaum Capital Partners in August 2018 ("TCP Transaction") and the asset management business of Citibanamex in September 2018 ("Citibanamex Transaction"), AUM reclassifications and net dispositions related to the transfer of BlackRock's UK Defined Contribution Administration and Platform business to Aegon N.V. in July 2018 ("Aegon Transaction"), and net AUM dispositions related to the sale of BlackRock's minority interest in DSP BlackRock Investment Managers Pvt. Ltd. to The DSP Group in August 2018 ("DSP Transaction").

• (2)Foreign exchange reflects the impact of translating non-U.S. dollar denominated AUM into U.S. dollars for reporting purposes.

• (3)Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing four months.

• (4)Advisory AUM represents long-term portfolio liquidation assignments.

• (5)Amounts include commodityiSharesETFs.