INVESTOR RELATIONS:

MEDIA RELATIONS:

Caroline Rodda 212.810.3442

Brian Beades 212.810.5596

BlackRock Reports Second Quarter 2022 Diluted EPS of $7.06, or $7.36 as adjusted

New York, July 15, 2022 - BlackRock, Inc. (NYSE: BLK) today reported financial results for the three and six months ended June 30, 2022.

$90 billion of quarterly total net inflows reflects continued strength of broad-based platform with positive flows across all product types and regions

6% decrease in revenue year-over-year primarily driven by the impact of significantly lower markets and dollar appreciation on average AUM and lower performance fees

5% increase in technology services revenue year-over-year reflects continued strong client demand for Aladdin, despite the negative impact of foreign exchange movements

14% decrease in operating income year-over-year

21% decrease in diluted EPS (30% as adjusted) year-over- year also reflects lower nonoperating income in the current quarter

$500 million of share repurchases in the current quarter

Laurence D. Fink, Chairman and CEO:

"The first half of 2022 brought an investment environment that we have not seen in decades. Investors are simultaneously navigating high inflation, rising rates and the worst start to the year for both stocks and bonds in half a century, with global equity and fixed income indexes down 20% and 10%, respectively.

"BlackRock generated net inflows of $90 billion in the second quarter demonstrating our ability, once again, to deliver industry-leading organic growth even in the most challenging of environments. Our connectivity with clients has never been stronger. Over the last twelve months, we've delivered over $460 billion of net inflows reflecting 5% organic base fee growth.

"I cannot think of a time when BlackRock's strategic focus has been more aligned with the needs of our clients than it is today. ETFs generated $52 billion of net inflows, led by fixed income net inflows of $31 billion. Active strategies continued to reflect demand for systematic equity, LifePath target-date solutions and alternatives, where we raised nearly $8 billion across commitments and net inflows. BlackRock's cash platform reached record AUM levels in the quarter, generating $21 billion of net inflows. And, we had record Aladdin client mandates in the first half of 2022.

"Over the course of BlackRock's 34-year history, we have experienced numerous periods of volatility and uncertainty, and BlackRock has always come through stronger. It is during periods like these that we differentiate ourselves even more with clients and further deepen those relationships. I see more opportunities for BlackRock today than ever before, and remain confident in our ability to deliver long-term growth for our clients, shareholders and employees."

FINANCIAL RESULTS

Q2

Q2

(in millions, except per share data)

2022

2021

AUM

$

8,487,410

$

9,495,993

% change

(11 )%

Average AUM

$

9,022,278

$

9,317,092

% change

(3)%

Total net flows

$

89,573

$

80,960

GAAP basis:

Revenue

$

4,526

$

4,820

% change

(6)%

Operating income

$

1,668

$

1,931

% change

(14 )%

Operating margin

36.9%

40.1%

Net income(1)

$

1,077

$

1,378

% change

(22 )%

Diluted EPS

$

7.06

$

8.92

% change

(21 )%

Weighted-average diluted shares

152.5

154.4

% change

(1)%

As Adjusted:

Operating income(2)

$

1,727

$

2,016

% change

(14 )%

Operating margin(2)

43.7%

46.9%

Net income(1) (2)

$

1,122

$

1,614

% change

(30 )%

Diluted EPS(2)

$

7.36

$

10.45

% change

(30 )%

  1. Net income represents net income attributable to BlackRock, Inc.
  2. See notes (1) and (2) to the condensed consolidated statements of income and supplemental information on pages 11 through 13 for more information on as adjusted items and the reconciliation to GAAP. Beginning in the first quarter of 2022, BlackRock updated the definitions of operating income, as adjusted, operating margin, as adjusted, and net income attributable to BlackRock, Inc., as adjusted, to include new adjustments. Such measures have been recast for 2021 to reflect the inclusion of such new adjustments.

NET FLOW HIGHLIGHTS

Q2

YTD

2022

2022

(in billions)

Long-term net flows:

$

69

$

182

By region:

Americas

$

18

$

46

EMEA

15

60

APAC

36

76

By client type:

Retail:

$

(10)

$

-

US

(7)

1

International

(3)

(1)

ETFs:

$

52

$

108

Core equity

15

48

Strategic

36

50

Precision

1

10

Institutional:

$

26

$

74

Active

5

22

Index

21

52

Cash management net flows

$

21

$

(6)

Advisory net flows

$

-

$

(1)

Total net flows

$

90

$

176

1

BUSINESS RESULTS

Q2 2022

Q2 2022

Base fees (1)

Base fees (1)

June 30, 2022

and securities

Q2 2022

June 30, 2022

and securities

AUM

lending revenue

(in millions), (unaudited)

Net flows

AUM

lending revenue

% of Total

% of Total

RESULTS BY CLIENT TYPE

Retail

$

(9,973

)

$

863,425

$

1,139

10

%

31

%

ETFs

52,103

2,784,296

1,436

33

%

39

%

Institutional:

Active

5,275

1,510,862

636

18

%

17

%

Index

21,208

2,580,603

245

30

%

7

%

Total institutional

26,483

4,091,465

881

48

%

24

%

Long-term

68,613

7,739,186

3,456

91

%

94

%

Cash management

21,218

739,457

232

9

%

6

%

Advisory

(258

)

8,767

-

-

-

Total

$

89,573

$

8,487,410

$

3,688

100

%

100

%

RESULTS BY INVESTMENT STYLE

Active

$

(10,339 ) $

2,210,648

$

1,727

26 %

47 %

Index and ETFs

78,952

5,528,538

1,729

65 %

47 %

Long-term

68,613

7,739,186

3,456

91%

94%

Cash management

21,218

739,457

232

9%

6%

Advisory

(258 )

8,767

-

-

-

Total

$

89,573

$

8,487,410

$

3,688

100 %

100 %

RESULTS BY PRODUCT TYPE

Equity

$

28,642

$

4,345,120

$

1,839

51 %

50 %

Fixed income

36,126

2,439,844

879

29 %

24 %

Multi-asset

1,380

678,465

331

8%

9%

Alternatives

2,465

275,757

407

3%

11 %

Long-term

68,613

7,739,186

3,456

91%

94%

Cash management

21,218

739,457

232

9%

6%

Advisory

(258 )

8,767

-

-

-

Total

$

89,573

$

8,487,410

$

3,688

100 %

100 %

  1. Base fees include investment advisory and administration fees.

INVESTMENT PERFORMANCE AT JUNE 30, 2022(1)

One-year period

Three-year period

Five-year period

Fixed income:

Actively managed AUM above benchmark or peer median

Taxable

49%

83%

89%

Tax-exempt

27%

33%

34%

Index AUM within or above applicable tolerance

89%

93%

94%

Equity:

Actively managed AUM above benchmark or peer median

Fundamental

35%

71%

83%

Systematic

59%

61%

81%

Index AUM within or above applicable tolerance

95%

95%

95%

  1. Past performance is not indicative of future results. The performance information shown is based on preliminary available data. Please refer to page 14 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 Friday, July 15, 2022 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, (866) 409-1555, or from outside the United States, (313) 209- 4906, shortly before 8:30 a.m. and reference the BlackRock Conference Call (ID Number 9540818). A live, listen-only webcast will also be available via the investor relations section of www.blackrock.com.

Both the teleconference and webcast will be available for replay by 11:30 a.m. (Eastern Time) on Friday, July 15, 2022 and ending at midnight on Friday, July 29, 2022. To access the replay of the teleconference, callers from the United States should dial (888) 203-1112 and callers from outside the United States should dial (719) 457-0820 and enter the Conference ID Number 9540818. To access the webcast, please visit the investor relations section of www.blackrock.com.

ABOUT BLACKROCK

BlackRock's purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable. For additional information on BlackRock, please visit www.blackrock.com/corporate | Twitter: @blackrock|

LinkedIn: www.linkedin.com/company/blackrock.

2

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION

(in millions, except shares and per share data), (unaudited)

Three Months

Three Months Ended

Ended

June 30,

March 31,

2022

2021

Change

2022

Change

Revenue

Investment advisory, administration fees and

securities lending revenue:

Investment advisory and administration fees

$

3,528

$

3,617

$

(89

)

$

3,695

$

(167

)

Securities lending revenue

160

140

20

138

22

Total investment advisory, administration fees and

securities lending revenue

3,688

3,757

(69

)

3,833

(145

)

Investment advisory performance fees

106

340

(234

)

98

8

Technology services revenue

332

316

16

341

(9

)

Distribution fees

361

369

(8

)

381

(20

)

Advisory and other revenue

39

38

1

46

(7

)

Total revenue

4,526

4,820

(294

)

4,699

(173

)

Expense

Employee compensation and benefits

1,414

1,548

(134 )

1,498

(84)

Distribution and servicing costs

572

523

49

574

(2)

Direct fund expense

304

320

(16 )

329

(25)

General and administration expense

530

461

69

496

34

Amortization of intangible assets

38

37

1

38

-

Total expense

2,858

2,889

(31 )

2,935

(77)

Operating income

1,668

1,931

(263 )

1,764

(96)

Nonoperating income (expense)

Net gain (loss) on investments

(314

)

314

(628

)

(102

)

(212

)

Interest and dividend income

21

8

13

18

3

Interest expense

(54

)

(52

)

(2

)

(54

)

-

Total nonoperating income (expense)

(347

)

270

(617

)

(138

)

(209

)

Income before income taxes

1,321

2,201

(880 )

1,626

(305)

Income tax expense

358

654

(296 )

263

95

Net income

963

1,547

(584 )

1,363

(400)

Less:

Net income (loss) attributable to noncontrolling

interests

(114 )

169

(283 )

(73 )

(41)

Net income attributable to BlackRock, Inc.

$

1,077

$

1,378

$

(301 )

$

1,436

$

(359)

Weighted-average common shares outstanding

Basic

151,292,580

152,443,039

(1,150,459

)

151,732,845

(440,265

)

Diluted

152,452,320

154,417,581

(1,965,261

)

153,530,395

(1,078,075

)

Earnings per share attributable to BlackRock, Inc.

common stockholders

Basic

$

7.12

$

9.04

$

(1.92

)

$

9.46

$

(2.34

)

Diluted

$

7.06

$

8.92

$

(1.86

)

$

9.35

$

(2.29

)

Cash dividends declared and paid per share

$

4.88

$

4.13

$

0.75

$

4.88

$

-

Supplemental information:

AUM (end of period)

$

8,487,410

$

9,495,993

$

(1,008,583)

$

9,569,513

$

(1,082,103)

Shares outstanding (end of period)

150,966,457

152,298,784

(1,332,327)

151,725,643

(759,186)

GAAP:

Operating margin

36.9 %

40.1 %

(320 ) bps

37.5 %

(60) bps

Effective tax rate

24.9 %

32.2 %

(730 ) bps

15.5 %

940 bps

As adjusted:

Operating income (1)

$

1,727

$

2,016

$

(289 )

$

1,822

$

(95)

Operating margin (1)

43.7 %

46.9 %

(320 ) bps

44.2 %

(50) bps

Nonoperating income (expense), less net income

(loss) attributable to noncontrolling interests

$

(233 )

$

101

$

(334 )

$

(65 )

$

(168)

Net income attributable to BlackRock, Inc. (2)

$

1,122

$

1,614

$

(492 )

$

1,462

$

(340)

Diluted earnings attributable to BlackRock, Inc.

common stockholders per share (2)

$

7.36

$

10.45

$

(3.09 )

$

9.52

$

(2.16)

Effective tax rate

24.9 %

23.8 %

110 bps

16.8 %

810 bps

See pages 11 through 13 for the reconciliation to GAAP and notes (1) and (2) to the condensed consolidated statements of income and supplemental

information for more information on as adjusted items. Beginning in the first quarter of 2022, BlackRock updated the definitions of operating income, as adjusted, operating margin, as adjusted, and net income attributable to BlackRock, Inc., as adjusted, to include new adjustments. Such measures have been recast for 2021 to reflect the inclusion of such new adjustments.

3

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION

(in millions, except shares and per share data), (unaudited)

Six Months Ended

June 30,

2022

2021

Change

Revenue

Investment advisory, administration fees and

securities lending revenue:

Investment advisory and administration fees

$

7,223

$

7,082

$

141

Securities lending revenue

298

267

31

Total investment advisory, administration fees and

securities lending revenue

7,521

7,349

172

Investment advisory performance fees

204

469

(265)

Technology services revenue

673

622

51

Distribution fees

742

709

33

Advisory and other revenue

85

69

16

Total revenue

9,225

9,218

7

Expense

Employee compensation and benefits

2,912

2,957

(45)

Distribution and servicing costs

1,146

1,028

118

Direct fund expense

633

640

(7)

General and administration expense

1,026

1,046

(20)

Amortization of intangible assets

76

71

5

Total expense

5,793

5,742

51

Operating income

3,432

3,476

(44)

Nonoperating income (expense)

Net gain (loss) on investments

(416 )

396

(812)

Interest and dividend income

39

27

12

Interest expense

(108 )

(107 )

(1)

Total nonoperating income (expense)

(485 )

316

(801)

Income before income taxes

2,947

3,792

(845)

Income tax expense

621

972

(351)

Net income

2,326

2,820

(494)

Less:

Net income (loss) attributable to noncontrolling

interests

(187 )

243

(430)

Net income attributable to BlackRock, Inc.

$

2,513

$

2,577

$

(64)

Weighted-average common shares outstanding

Basic

151,511,496

152,504,902

(993,406)

Diluted

152,990,147

154,359,353

(1,369,206)

Earnings per share attributable to BlackRock, Inc.

common stockholders

Basic

$

16.59

$

16.90

$

(0.31)

Diluted

$

16.43

$

16.69

$

(0.26)

Cash dividends declared and paid per share

$

9.76

$

8.26

$

1.50

Supplemental information:

AUM (end of period)

$

8,487,410

$

9,495,993

$

(1,008,583)

Shares outstanding (end of period)

150,966,457

152,298,784

(1,332,327)

GAAP:

Operating margin

37.2 %

37.7 %

(50) bps

Effective tax rate

19.8 %

27.4 %

(760) bps

As adjusted:

Operating income (1)

$

3,549

$

3,615

$

(66)

Operating margin (1)

43.9 %

46.4 %

(250) bps

Nonoperating income (expense), less net income

(loss) attributable to noncontrolling interests

$

(298 )

$

73

$

(371)

Net income attributable to BlackRock, Inc. (2)

$

2,584

$

2,854

$

(270)

Diluted earnings attributable to BlackRock, Inc.

common stockholders per share (2)

$

16.89

$

18.49

$

(1.60)

Effective tax rate

20.5 %

22.6 %

(210) bps

See pages 11 through 13 for the reconciliation to GAAP and notes (1) and (2) to the condensed consolidated statements of income and supplemental information for more information on as adjusted items. Beginning in the first quarter of 2022, BlackRock updated the definitions of operating income, as adjusted, operating margin, as adjusted, and net income attributable to BlackRock, Inc., as adjusted, to include new adjustments. Such measures have been recast for 2021 to reflect the inclusion of such new adjustments.

4

ASSETS UNDER MANAGEMENT

(in millions), (unaudited)

Current Quarter Component Changes by Client Type and Product Type

Net

March 31,

inflows

Market

June 30,

2022

(outflows)

change

FX impact(1)

2022

Average AUM (2)

Retail:

Equity

$

446,043

$

(872)

$

(66,388 )

$

(7,557 )

$

371,226

$

409,171

Fixed income

343,712

(7,563)

(18,397 )

(3,892 )

313,860

328,816

Multi-asset

149,480

(3,000)

(16,394 )

(944 )

129,142

139,662

Alternatives

49,888

1,462

(1,681 )

(472 )

49,197

49,900

Retail subtotal

989,123

(9,973)

(102,860 )

(12,865 )

863,425

927,549

ETFs:

Equity

2,350,421

23,328

(348,798 )

(14,608 )

2,010,343

2,178,149

Fixed income

712,767

30,739

(41,926 )

(5,692 )

695,888

702,485

Multi-asset

8,716

161

(942 )

(67 )

7,868

8,246

Alternatives

78,592

(2,125)

(6,159 )

(111 )

70,197

75,187

ETFs subtotal

3,150,496

52,103

(397,825 )

(20,478 )

2,784,296

2,964,067

Institutional:

Active:

Equity

188,822

3,885

(23,962 )

(5,048 )

163,697

176,618

Fixed income

718,225

(6,774)

(40,123 )

(9,476 )

661,852

687,561

Multi-asset

617,843

4,866

(72,880 )

(15,670 )

534,159

575,970

Alternatives

151,277

3,298

(805 )

(2,616 )

151,154

150,957

Active subtotal

1,676,167

5,275

(137,770 )

(32,810 )

1,510,862

1,591,106

Index:

Equity

2,133,758

2,301

(287,363 )

(48,842 )

1,799,854

1,969,660

Fixed income

871,167

19,724

(73,665 )

(48,982 )

768,244

813,260

Multi-asset

9,143

(647)

(937 )

(263 )

7,296

7,863

Alternatives

5,696

(170)

(99 )

(218 )

5,209

5,600

Index subtotal

3,019,764

21,208

(362,064 )

(98,305 )

2,580,603

2,796,383

Institutional subtotal

4,695,931

26,483

(499,834 )

(131,115 )

4,091,465

4,387,489

Long-term

8,835,550

68,613

(1,000,519

)

(164,458

)

7,739,186

8,279,105

Cash management

724,939

21,218

(130

)

(6,570

)

739,457

734,270

Advisory (3)

9,025

(258

)

-

-

8,767

8,903

Total

$

9,569,514

$

89,573

$

(1,000,649

)

$

(171,028

)

$

8,487,410

$

9,022,278

Current Quarter Component Changes by Investment Style and Product Type (Long-Term)

Net

March 31,

inflows

Market

June 30,

2022

(outflows)

change

FX impact(1)

2022

Average AUM (2)

Active:

Equity

$

472,849

$

(1,825)

$

(69,076 )

$

(8,900 )

$

393,048

$

434,212

Fixed income

1,037,813

(15,139 )

(56,717 )

(12,000 )

953,957

993,668

Multi-asset

767,316

1,865

(89,273 )

(16,613 )

663,295

715,624

Alternatives

201,162

4,760

(2,486 )

(3,088 )

200,348

200,855

Active subtotal

2,479,140

(10,339 )

(217,552 )

(40,601 )

2,210,648

2,344,359

Index and ETFs:

ETFs:

Equity

2,350,421

23,328

(348,798 )

(14,608 )

2,010,343

2,178,149

Fixed income

712,767

30,739

(41,926 )

(5,692 )

695,888

702,485

Multi-asset

8,716

161

(942 )

(67 )

7,868

8,246

Alternatives

78,592

(2,125)

(6,159 )

(111 )

70,197

75,187

ETFs subtotal

3,150,496

52,103

(397,825 )

(20,478 )

2,784,296

2,964,067

Non-ETF Index:

Equity

2,295,774

7,139

(308,637 )

(52,547 )

1,941,729

2,121,237

Fixed income

895,291

20,526

(75,468 )

(50,350 )

789,999

835,969

Multi-asset

9,150

(646)

(938 )

(264 )

7,302

7,871

Alternatives

5,699

(170)

(99 )

(218 )

5,212

5,602

Non-ETF Index subtotal

3,205,914

26,849

(385,142 )

(103,379 )

2,744,242

2,970,679

Index and ETFs subtotal

6,356,410

78,952

(782,967 )

(123,857 )

5,528,538

5,934,746

Long-term

$

8,835,550

$

68,613

$

(1,000,519 )

$

(164,458 )

$

7,739,186

$

8,279,105

Current Quarter Component Changes by Product Type (Long-Term)

Net

March 31,

inflows

Market

June 30,

2022

(outflows)

change

FX impact(1)

2022

Average AUM (2)

Equity

$

5,119,044

$

28,642

$

(726,511 )

$

(76,055 )

$

4,345,120

$

4,733,598

Fixed income

2,645,871

36,126

(174,111 )

(68,042 )

2,439,844

2,532,122

Multi-asset

785,182

1,380

(91,153 )

(16,944 )

678,465

731,741

Alternatives:

Illiquid alternatives

109,141

5,414

(682 )

(1,834 )

112,039

110,501

Liquid alternatives

87,326

(932)

(1,518 )

(1,106 )

83,770

85,574

Currency and commodities(4)

88,986

Alternatives subtotal

285,453

Long-term

$

8,835,550

$

(2,017

)

(6,544

)

(477

)

79,948

85,569

2,465

(8,744

)

(3,417

)

275,757

281,644

68,613

$

(1,000,519

)

$

(164,458

)

$

7,739,186

$

8,279,105

  1. Foreign exchange reflects the impact of translating non-US dollar denominated AUM into US dollars for reporting purposes.
  2. Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing four months.
  3. Advisory AUM represents mandates linked to purchases and disposition of assets and portfolios on behalf of official institutions and long-term portfolio liquidation assignments.
  4. Amounts include commodity ETFs.

5

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BlackRock Inc. published this content on 15 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 July 2022 10:03:04 UTC.