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BlackRock second-quarter profit misses estimates

BlackRock second-quarter profit misses estimates
The BlackRock logo is seen at the BlackRock Japan headquarters in Tokyo, Japan, October 20, 2016. REUTERS/Toru Hanai -
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Toru Hanai(Reuters)
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(Reuters) – BlackRock Inc <BLK.N>, the world’s largest asset manager, missed analysts’ estimates for quarterly profit on Friday, as investment advisory and securities lending revenue fell and costs rose.

Its institutional funds added $87.36 billion (£69.77 billion) in the second quarter, up from $29.12 billion in the first quarter.

Investors poured more money into BlackRock’s actively managed funds aimed at beating the market over the low-fee passive-investment products.

BlackRock said its iShares-branded ETFs took in $36.10 billion of new money, up from $30.69 billion in the preceding quarter.

Total revenue fell 2.2% to $3.52 billion from a year earlier.

The New York-based company’s net income attributable to BlackRock fell to $1 billion, or $6.41 per share, in the quarter ended June 30 from $1.07 billion, or $6.62 per share, a year earlier. (https://bit.ly/2Ya6YZj)

Analysts had expected a profit of $6.50 per share, according to IBES data from Refinitiv.

Total expenses rose nearly 4% to $2.25 billion.

The company ended the quarter with $6.84 trillion in assets under management, up from $6.30 trillion a year earlier.

Shares of the company were up marginally before the opening bell.

(Reporting by C Nivedita and Bharath Manjesh in Bengaluru; Editing by Maju Samuel)

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