BlackRock (BLK) 8-K BlackRock Reports First Quarter 2024 Diluted EPS of $10.48, or $9.81 as adjusted

Exhibit 99.1

 

INVESTOR RELATIONS: Caroline Rodda 212.810.3442	MEDIA RELATIONS:        Ed Sweeney 646.231.0268
BlackRock Reports First Quarter 2024 Diluted EPS of $10.48, or $9.81 as adjusted
New York, April 12, 2024 – BlackRock, Inc. (NYSE: BLK) today reported financial results for the three months ended March 31, 2024.

$76 billion of quarterly long-term net inflows reflect continued strength of broad-based platform with positive flows across asset classes and client types $57 billion of quarterly total net inflows also reflect seasonal outflows from cash management Record $10.5 trillion in AUM, up $1.4 trillion year-over-year, driven by consistent organic growth and positive market movements   11% increase in revenue year-over-year, primarily driven by the positive impact of markets on average AUM, organic base fee growth, and higher performance fees and technology services revenue 18% increase in operating income year-over-year (17% as adjusted) 37% increase in diluted EPS year-over-year (24% as adjusted) also reflects higher nonoperating income and a lower effective tax rate in the current quarter Issued $3 billion of debt to fund a portion of the cash consideration for the planned acquisition of Global Infrastructure Partners $375 million of share repurchases in the current quarter and 2% increase in quarterly cash dividend to $5.10 per share Laurence D. Fink, Chairman and CEO: “BlackRock’s momentum continues to build, with accelerating client activity and line of sight into the funding of significant wealth, institutional, and Aladdin mandates. Organic asset and base fee growth accelerated into the end of the quarter, and first quarter long-term net inflows of $76 billion already represent nearly 40% of full year 2023 levels.   “Clients are turning to BlackRock to unlock the full potential of their portfolios, reflected in industry-leading total net inflows of $236 billion over the last twelve months. We continue to deliver sustained asset and technology services growth at scale, with a double-digit increase in technology services revenue, 180 basis points of margin expansion and 24% growth in EPS year-over-year, as adjusted.   “Being a growth company requires our continual innovation, investment, and client focus. BlackRock has stayed connected with our clients and invested in our platform over years, in anticipation of clients' evolving needs. Through this connectivity, we are having richer conversations with clients than ever before about their whole portfolio and in many cases deepening our relationships with them.   “With markets full of complexity and opportunity, clients are increasingly coming to BlackRock for insights and advice. We see significant growth potential in infrastructure, technology, retirement and whole portfolio solutions, with a strong pipeline that has some of the best breadth that we’ve ever seen. We will continue to stay in front of client needs to deliver long-term growth for our clients, shareholders and employees.”

FINANCIAL RESULTS							NET FLOW HIGHLIGHTS(1)
	Q1			Q1						Q1
(in millions, except per share data)	2024			2023			(in billions)			2024			LTM(2)
AUM	$	10,472,500		$	9,090,271		Long-term net flows:			$	76		$	183
% change		15	%
Average AUM	$	10,177,170		$	8,902,588		By region:
% change		14	%					Americas		$	58		$	133
Total net flows	$	57,190		$	110,318			EMEA			19			24
								APAC			(1	)		26
GAAP basis:
Revenue	$	4,728		$	4,243		By client type:
% change		11	%
Operating income	$	1,693		$	1,438			Retail:		$	7		$	(2	)
% change		18	%						US		7			2
Operating margin		35.8	%		33.9	%			International		0.3			(4	)
Net income(1)	$	1,573		$	1,157
% change		36	%					ETFs:		$	67		$	231
Diluted EPS	$	10.48		$	7.64				Core equity		37			116
% change		37	%						Strategic		14			90
Weighted-average diluted shares		150.1			151.3				Precision		16			25
% change		(1	)%
								Institutional:		$	2		$	(47	)
As Adjusted(2):									Active		15			30
Operating income	$	1,775		$	1,511				Index		(13	)		(77	)
% change		17	%
Operating margin		42.2	%		40.4	%
Net income(1)	$	1,473		$	1,200		Cash management net flows			$	(19	)	$	52
% change		23	%
Diluted EPS	$	9.81		$	7.93
% change		24	%				Total net flows			$	57		$	236
_________________________							_________________________
(1)   Net income represents net income attributable to BlackRock, Inc. (2)   See pages 9 through 11 for the reconciliation to GAAP and notes (1) through (3) to the condensed       consolidated statements of income and supplemental information for more information on as       adjusted items.							(1)   Totals may not add due to rounding. (2)   Amounts represent last twelve months net flows from April 1, 2023 to March 31, 2024.

1

BUSINESS RESULTS

											Q1 2024
						Q1 2024					Base fees(1)
						Base fees(1)		March 31, 2024			and securities
	Q1 2024			March 31, 2024		and securities		AUM			lending revenue
(in millions), (unaudited)	Net flows			AUM		lending revenue		% of Total			% of Total
RESULTS BY CLIENT TYPE
Retail	$	7,161		$	973,985	$	1,041		9	%		28	%
ETFs		67,240			3,745,642		1,567		36	%		41	%
Institutional:
Active		14,686			1,961,376		697		19	%		18	%
Index		(12,673	)		3,045,715		228		29	%		6	%
Total institutional		2,013			5,007,091		925		48	%		24	%
Long-term		76,414			9,726,718		3,533		93	%		93	%
Cash management		(19,224	)		745,782		245		7	%		7	%
Total	$	57,190		$	10,472,500	$	3,778		100	%		100	%
RESULTS BY INVESTMENT STYLE
Active	$	14,897		$	2,691,933	$	1,681		26	%		44	%
Index and ETFs		61,517			7,034,785		1,852		67	%		49	%
Long-term		76,414			9,726,718		3,533		93	%		93	%
Cash management		(19,224	)		745,782		245		7	%		7	%
Total	$	57,190		$	10,472,500	$	3,778		100	%		100	%
RESULTS BY PRODUCT TYPE
Equity	$	18,421		$	5,717,852	$	1,893		54	%		50	%
Fixed income		41,736			2,805,745		903		27	%		24	%
Multi-asset		5,097			906,597		314		9	%		8	%
Alternatives:
Illiquid alternatives		1,214			137,254		240		1	%		6	%
Liquid alternatives		(1,914	)		75,365		138		1	%		4	%
Currency and commodities		11,860			83,905		45		1	%		1	%
Total Alternatives		11,160			296,524		423		3	%		11	%
Long-term		76,414			9,726,718		3,533		93	%		93	%
Cash management		(19,224	)		745,782		245		7	%		7	%
Total	$	57,190		$	10,472,500	$	3,778		100	%		100	%

(1)

Base fees include investment advisory and administration fees.

INVESTMENT PERFORMANCE AT March 31, 2024(1)

	One-year period	Three-year period	Five-year period
Fixed income:
Actively managed AUM above benchmark or peer median
Taxable	72%	82%	93%
Tax-exempt	67%	47%	44%
Index AUM within or above applicable tolerance	98%	100%	100%
Equity:
Actively managed AUM above benchmark or peer median
Fundamental	66%	41%	79%
Systematic	92%	88%	90%
Index AUM within or above applicable tolerance	97%	99%	99%

(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, Martin S. Small, will host a teleconference call for investors and analysts on Friday, April 12, 2024 at 7:30 a.m. (Eastern Time). Members of the public who are interested in participating in the teleconference should dial, from the United States, (773) 305-6865, or from outside the United States, (866) 409-1555, shortly before 7:30 a.m. and reference the BlackRock Conference Call (ID Number 5586428). A live, listen-only webcast will also be available via the investor relations section of www.blackrock.com.

The webcast will be available for replay by 10:30 a.m. (Eastern Time) on Friday, April 12, 2024. To access the replay of 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.

2

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION

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

											Three Months
	Three Months Ended										Ended
	March 31,										December 31,
	2024			2023			Change				2023			Change
Revenue
Investment advisory, administration fees and    securities lending revenue:
Investment advisory and administration fees	$	3,627		$	3,335		$	292			$	3,448		$	179
Securities lending revenue		151			167			(16	)			157			(6	)
Total investment advisory, administration fees    and securities lending revenue		3,778			3,502			276				3,605			173
Investment advisory performance fees		204			55			149				311			(107	)
Technology services revenue		377			340			37				379			(2	)
Distribution fees		310			319			(9	)			303			7
Advisory and other revenue		59			27			32				33			26
Total revenue		4,728			4,243			485				4,631			97
Expense
Employee compensation and benefits		1,580			1,427			153				1,503			77
Sales, asset and account expense:
Distribution and servicing costs		518			505			13				502			16
Direct fund expense		338			315			23				318			20
Sub-advisory and other		32			26			6				35			(3	)
Total sales, asset and account expense		888			846			42				855			33
General and administration expense		529			495			34				589			(60	)
Restructuring charge		-			-			-				61			(61	)
Amortization of intangible assets		38			37			1				38			-
Total expense		3,035			2,805			230				3,046			(11	)
Operating income		1,693			1,438			255				1,585			108
Nonoperating income (expense)
Net gain (loss) on investments		171			89			82				265			(94	)
Interest and dividend income		141			86			55				159			(18	)
Interest expense		(92	)		(59	)		(33	)			(82	)		(10	)
Total nonoperating income (expense)		220			116			104				342			(122	)
Income before income taxes		1,913			1,554			359				1,927			(14	)
Income tax expense		290			385			(95	)			438			(148	)
Net income		1,623			1,169			454				1,489			134
Less:
Net income (loss) attributable to noncontrolling    interests		50			12			38				114			(64	)
Net income attributable to BlackRock, Inc.	$	1,573		$	1,157		$	416			$	1,375		$	198
Weighted-average common shares outstanding
Basic		148.7			149.9			(1.2	)			148.7			0.0
Diluted		150.1			151.3			(1.2	)			150.2			(0.1	)
Earnings per share attributable to BlackRock,    Inc. common stockholders
Basic	$	10.58		$	7.72		$	2.86			$	9.25		$	1.33
Diluted	$	10.48		$	7.64		$	2.84			$	9.15		$	1.33
Cash dividends declared and paid per share	$	5.10		$	5.00		$	0.10			$	5.00		$	0.10
Supplemental information:
AUM (end of period)	$	10,472,500		$	9,090,271		$	1,382,229			$	10,008,995		$	463,505
Shares outstanding (end of period)		148.8			149.9			(1.1	)			148.5			0.3
GAAP:
Operating margin		35.8	%		33.9	%		190		bps		34.2	%		160		bps
Effective tax rate		15.6	%		25.0	%		(940	)	bps		24.2	%		(860	)	bps
As adjusted:
Operating income (1)	$	1,775		$	1,511		$	264			$	1,716		$	59
Operating margin (1)		42.2	%		40.4	%		180		bps		41.6	%		60		bps
Nonoperating income (expense), less net income    (loss) attributable to noncontrolling    interests (2)	$	139		$	87		$	52			$	199		$	(60	)
Net income attributable to BlackRock, Inc. (3)	$	1,473		$	1,200		$	273			$	1,451		$	22
Diluted earnings attributable to BlackRock, Inc.    common stockholders per share (3)	$	9.81		$	7.93		$	1.88			$	9.66		$	0.15
Effective tax rate		23.0	%		25.0	%		(200	)	bps		24.2	%		(120	)	bps

See pages 9 through 11 for the reconciliation to accounting principles generally accepted in the United States ("GAAP") and notes (1) through (3) to the condensed consolidated statements of income and supplemental information for more information on as adjusted items. Beginning in the first quarter of 2024, BlackRock, Inc. updated the presentation of the Company’s expense line items within the consolidated statements of income by including a new “sales, asset, and account expense” income statement caption. Such expense line items have been recast for 2022 and 2023 to conform to this new presentation. See page 12 for a recast of 2022 and 2023 expense line items.

3

ASSETS UNDER MANAGEMENT

(in millions), (unaudited)

Current Quarter Component Changes by Client Type and Product Type
			Net
	December 31,		inflows			Market						March 31,
	2023		(outflows)			change			FX impact(1)			2024		Average AUM(2)
Retail:
Equity	$	435,734	$	4,089		$	33,254		$	(1,639	)	$	471,438	$	450,355
Fixed income		312,799		2,867			(153	)		(509	)		315,004		313,279
Multi-asset		139,537		844			5,996			(195	)		146,182		141,829
Alternatives		41,627		(639	)		508			(135	)		41,361		41,366
Retail subtotal		929,697		7,161			39,605			(2,478	)		973,985		946,829
ETFs:
Equity		2,532,631		36,754			191,180			(7,789	)		2,752,776		2,617,233
Fixed income		898,403		18,208			(8,715	)		(3,141	)		904,755		901,248
Multi-asset		9,140		(445	)		416			(68	)		9,043		8,897
Alternatives		59,125		12,723			7,281			(61	)		79,068		66,468
ETFs subtotal		3,499,299		67,240			190,162			(11,059	)		3,745,642		3,593,846
Institutional:
Active:
Equity		186,688		3,306			14,921			(1,873	)		203,042		192,595
Fixed income		836,823		5,295			(1,079	)		(4,241	)		836,798		833,014
Multi-asset		717,182		6,288			29,679			(5,132	)		748,017		726,435
Alternatives		171,980		(203	)		2,752			(1,010	)		173,519		172,521
Active subtotal		1,912,673		14,686			46,273			(12,256	)		1,961,376		1,924,565
Index:
Equity		2,138,291		(25,728	)		201,611			(23,578	)		2,290,596		2,203,945
Fixed income		756,001		15,366			(3,851	)		(18,328	)		749,188		745,743
Multi-asset		4,945		(1,590	)		44			(44	)		3,355		4,199
Alternatives		3,252		(721	)		71			(26	)		2,576		3,004
Index subtotal		2,902,489		(12,673	)		197,875			(41,976	)		3,045,715		2,956,891
Institutional subtotal		4,815,162		2,013			244,148			(54,232	)		5,007,091		4,881,456
Long-term		9,244,158		76,414			473,915			(67,769	)		9,726,718		9,422,131
Cash management		764,837		(19,224	)		2,480			(2,311	)		745,782		755,039
Total	$	10,008,995	$	57,190		$	476,395		$	(70,080	)	$	10,472,500	$	10,177,170
Current Quarter Component Changes by Investment Style and Product Type (Long-Term)
			Net
	December 31,		inflows			Market						March 31,
	2023		(outflows)			change			FX impact(1)			2024		Average AUM(2)
Active:
Equity	$	427,448	$	(587	)	$	31,599		$	(2,795	)	$	455,665	$	437,270
Fixed income		1,123,422		9,193			(967	)		(4,442	)		1,127,206		1,121,126
Multi-asset		856,705		7,133			35,675			(5,327	)		894,186		868,251
Alternatives		213,603		(842	)		3,260			(1,145	)		214,876		213,885
Active subtotal		2,621,178		14,897			69,567			(13,709	)		2,691,933		2,640,532
Index and ETFs:
ETFs:
Equity		2,532,631		36,754			191,180			(7,789	)		2,752,776		2,617,233
Fixed income		898,403		18,208			(8,715	)		(3,141	)		904,755		901,248
Multi-asset		9,140		(445	)		416			(68	)		9,043		8,897
Alternatives		59,125		12,723			7,281			(61	)		79,068		66,468
ETFs subtotal		3,499,299		67,240			190,162			(11,059	)		3,745,642		3,593,846
Non-ETF Index:
Equity		2,333,265		(17,746	)		218,187			(24,295	)		2,509,411		2,409,625
Fixed income		782,201		14,335			(4,116	)		(18,636	)		773,784		770,910
Multi-asset		4,959		(1,591	)		44			(44	)		3,368		4,212
Alternatives		3,256		(721	)		71			(26	)		2,580		3,006
Non-ETF Index subtotal		3,123,681		(5,723	)		214,186			(43,001	)		3,289,143		3,187,753
Index and ETFs subtotal		6,622,980		61,517			404,348			(54,060	)		7,034,785		6,781,599
Long-term	$	9,244,158	$	76,414		$	473,915		$	(67,769	)	$	9,726,718	$	9,422,131
Current Quarter Component Changes by Product Type (Long-Term)
			Net
	December 31,		inflows			Market						March 31,
	2023		(outflows)			change			FX impact(1)			2024		Average AUM(2)
Equity	$	5,293,344	$	18,421		$	440,966		$	(34,879	)	$	5,717,852	$	5,464,128
Fixed income		2,804,026		41,736			(13,798	)		(26,219	)		2,805,745		2,793,284
Multi-asset		870,804		5,097			36,135			(5,439	)		906,597		881,360
Alternatives:
Illiquid alternatives		136,909		1,214			(132	)		(737	)		137,254		136,617
Liquid alternatives		74,233		(1,914	)		3,375			(329	)		75,365		74,923
Currency and commodities(3)		64,842		11,860			7,369			(166	)		83,905		71,819
Alternatives subtotal		275,984		11,160			10,612			(1,232	)		296,524		283,359
Long-term	$	9,244,158	$	76,414		$	473,915		$	(67,769	)	$	9,726,718	$	9,422,131

(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)

Amounts include commodityETFs.

4

ASSETS UNDER MANAGEMENT

(in millions), (unaudited)

Year-over-Year Component Changes by Client Type and Product Type
			Net
	March 31,		inflows					Market						March 31,
	2023		(outflows)			Acquisition(1)		change			FX impact(2)			2024		Average AUM(3)
Retail:
Equity	$	394,274	$	4,900		$	-	$	71,775		$	489		$	471,438	$	418,650
Fixed income		305,937		(25	)		-		7,456			1,636			315,004		307,972
Multi-asset		128,681		1,752			-		15,678			71			146,182		134,592
Alternatives		48,087		(8,221	)		-		1,462			33			41,361		43,616
Retail subtotal		876,979		(1,594	)		-		96,371			2,229			973,985		904,830
ETFs:
Equity		2,191,437		128,083			-		436,890			(3,634	)		2,752,776		2,375,459
Fixed income		810,776		96,651			-		(1,816	)		(856	)		904,755		853,864
Multi-asset		7,688		436			-		926			(7	)		9,043		8,176
Alternatives		64,402		6,307			-		8,347			12			79,068		63,365
ETFs subtotal		3,074,303		231,477			-		444,347			(4,485	)		3,745,642		3,300,864
Institutional:
Active:
Equity		176,053		(6,313	)		-		34,025			(723	)		203,042		180,695
Fixed income		814,637		(5,693	)		-		30,449			(2,595	)		836,798		808,740
Multi-asset		629,018		35,366			-		84,191			(558	)		748,017		674,967
Alternatives		158,632		6,897			2,177		5,952			(139	)		173,519		166,809
Active subtotal		1,778,340		30,257			2,177		154,617			(4,015	)		1,961,376		1,831,211
Index:
Equity		1,945,580		(112,948	)		-		481,253			(23,289	)		2,290,596		2,056,449
Fixed income		722,394		40,014			-		5,469			(18,689	)		749,188		720,887
Multi-asset		6,493		(3,346	)		-		351			(143	)		3,355		5,296
Alternatives		3,244		(695	)		-		67			(40	)		2,576		3,184
Index subtotal		2,677,711		(76,975	)		-		487,140			(42,161	)		3,045,715		2,785,816
Institutional subtotal		4,456,051		(46,718	)		2,177		641,757			(46,176	)		5,007,091		4,617,027
Long-term		8,407,333		183,165			2,177		1,182,475			(48,432	)		9,726,718		8,822,721
Cash management		682,938		52,403			-		9,391			1,050			745,782		719,487
Total	$	9,090,271	$	235,568		$	2,177	$	1,191,866		$	(47,382	)	$	10,472,500	$	9,542,208
Year-over-Year Component Changes by Investment Style and Product Type (Long-Term)
			Net
	March 31,		inflows					Market						March 31,
	2023		(outflows)			Acquisition(1)		change			FX impact(2)			2024		Average AUM(3)
Active:
Equity	$	410,889	$	(22,266	)	$	-	$	67,830		$	(788	)	$	455,665	$	417,566
Fixed income		1,098,737		(7,696	)		-		37,357			(1,192	)		1,127,206		1,091,806
Multi-asset		757,692		37,114			-		99,866			(486	)		894,186		809,548
Alternatives		206,716		(1,325	)		2,177		7,414			(106	)		214,876		210,424
Active subtotal		2,474,034		5,827			2,177		212,467			(2,572	)		2,691,933		2,529,344
Index and ETFs:
ETFs:
Equity		2,191,437		128,083			-		436,890			(3,634	)		2,752,776		2,375,459
Fixed income		810,776		96,651			-		(1,816	)		(856	)		904,755		853,864
Multi-asset		7,688		436			-		926			(7	)		9,043		8,176
Alternatives		64,402		6,307			-		8,347			12			79,068		63,365
ETFs subtotal		3,074,303		231,477			-		444,347			(4,485	)		3,745,642		3,300,864
Non-ETF Index:
Equity		2,105,018		(92,095	)		-		519,223			(22,735	)		2,509,411		2,238,228
Fixed income		744,231		41,992			-		6,017			(18,456	)		773,784		745,793
Multi-asset		6,500		(3,342	)		-		354			(144	)		3,368		5,307
Alternatives		3,247		(694	)		-		67			(40	)		2,580		3,185
Non-ETF Index subtotal		2,858,996		(54,139	)		-		525,661			(41,375	)		3,289,143		2,992,513
Index and ETFs subtotal		5,933,299		177,338			-		970,008			(45,860	)		7,034,785		6,293,377
Long-term	$	8,407,333	$	183,165		$	2,177	$	1,182,475		$	(48,432	)	$	9,726,718	$	8,822,721
Year-over-Year Component Changes by Product Type (Long-Term)
			Net
	March 31,		inflows					Market						March 31,
	2023		(outflows)			Acquisition(1)		change			FX impact(2)			2024		Average AUM(3)
Equity	$	4,707,344	$	13,722		$	-	$	1,023,943		$	(27,157	)	$	5,717,852	$	5,031,253
Fixed income		2,653,744		130,947			-		41,558			(20,504	)		2,805,745		2,691,463
Multi-asset		771,880		34,208			-		101,146			(637	)		906,597		823,031
Alternatives:
Illiquid alternatives		123,416		10,446			2,177		1,128			87			137,254		131,461
Liquid alternatives		80,151		(11,159	)		-		6,420			(47	)		75,365		76,294
Currency and commodities(4)		70,798		5,001			-		8,280			(174	)		83,905		69,219
Alternatives subtotal		274,365		4,288			2,177		15,828			(134	)		296,524		276,974
Long-term	$	8,407,333	$	183,165		$	2,177	$	1,182,475		$	(48,432	)	$	9,726,718	$	8,822,721

(1)

Amounts include AUM attributable to the acquisition of Kreos Capital in August 2023 (the "Kreos Transaction").

(2)

Foreign exchange reflects the impact of translating non-US dollar denominated AUM into US dollars for reporting purposes.

(3)

Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing thirteen months.

(4)

Amounts include commodityETFs.

5

SUMMARY OF REVENUE

	Three Months							Three Months
	Ended							Ended
	March 31,							December 31,
(in millions), (unaudited)	2024		2023		Change			2023		Change
Revenue
Investment advisory, administration fees and   securities lending revenue:
Equity:
Active	$	516	$	500	$	16		$	484	$	32
ETFs		1,190		1,078		112			1,102		88
Non-ETF Index		187		177		10			183		4
Equity subtotal		1,893		1,755		138			1,769		124
Fixed income:
Active		484		468		16			468		16
ETFs		327		295		32			311		16
Non-ETF Index		92		87		5			85		7
Fixed income subtotal		903		850		53			864		39
Multi-asset		314		296		18			299		15
Alternatives:
Illiquid alternatives		240		201		39			251		(11	)
Liquid alternatives		138		145		(7	)		138		-
Currency and commodities		45		46		(1	)		44		1
Alternatives subtotal		423		392		31			433		(10	)
Long-term		3,533		3,293		240			3,365		168
Cash management		245		209		36			240		5
Total investment advisory, administration   fees and securities lending revenue		3,778		3,502		276			3,605		173
Investment advisory performance fees:
Equity		8		6		2			61		(53	)
Fixed income		4		1		3			2		2
Multi-asset		2		15		(13	)		5		(3	)
Alternatives:
Illiquid alternatives		125		21		104			149		(24	)
Liquid alternatives		65		12		53			94		(29	)
Alternatives subtotal		190		33		157			243		(53	)
Total investment advisory performance fees		204		55		149			311		(107	)
Technology services revenue		377		340		37			379		(2	)
Distribution fees		310		319		(9	)		303		7
Advisory and other revenue:
Advisory		13		14		(1	)		15		(2	)
Other		46		13		33			18		28
Total advisory and other revenue		59		27		32			33		26
Total revenue	$	4,728	$	4,243	$	485		$	4,631	$	97

Highlights

•

Investment advisory, administration fees and securities lending revenue increased $276 million from the first quarter of 2023, primarily driven by the impact of market beta on average AUM, positive organic base fee growth and the effect of one additional day in the current quarter, partially offset by lower securities lending revenue. Securities lending revenue of $151 million decreased from $167 million in the first quarter of 2023, primarily reflecting lower spreads.

Investment advisory, administration fees and securities lending revenue increased $173 million from the fourth quarter of 2023, primarily driven by the impact of market beta on average AUM and positive organic base fee growth, partially offset by the effect of one fewer day in the quarter. Securities lending revenue of $151 million decreased from $157 million in the fourth quarter of 2023, primarily reflecting lower spreads.

•

Performance fees increased $149 million from the first quarter of 2023, reflecting higher revenue from alternative products.

Performance fees decreased $107 million from the fourth quarter of 2023, primarily reflecting a seasonally higher number of products with performance measurement periods that end in the fourth quarter.

•

Technology services revenue increased $37 million from the first quarter of 2023, reflecting sustained demand for Aladdin technology offerings. Technology services annual contract value (“ACV”)(1) increased 9% from the first quarter of 2023.

•

Advisory and other revenue increased $32 million from the first quarter of 2023 and $26 million from the fourth quarter of 2023, reflecting higher transition management assignments and the impact of recording earnings (losses) from certain equity method minority investments within nonoperating income (expense) beginning in the first quarter of 2024.

(1)

See note (4) to the condensed consolidated statements of income and supplemental information on page 11 for more information on ACV.

6

SUMMARY OF OPERATING EXPENSE

	Three Months									Three Months
	Ended									Ended
	March 31,									December 31,
(in millions), (unaudited)	2024			2023			Change			2023			Change
Operating expense
Employee compensation and benefits	$	1,580		$	1,427		$	153		$	1,503		$	77
Sales, asset and account expense(1):
Distribution and servicing costs		518			505			13			502			16
Direct fund expense		338			315			23			318			20
Sub-advisory and other		32			26			6			35			(3	)
Total sales, asset and account expense		888			846			42			855			33
General and administration expense:
Marketing and promotional		82			74			8			87			(5	)
Occupancy and office related		101			110			(9	)		105			(4	)
Portfolio services		66			68			(2	)		68			(2	)
Technology		160			135			25			186			(26	)
Professional services		58			42			16			67			(9	)
Communications		10			12			(2	)		11			(1	)
Foreign exchange remeasurement		2			(1	)		3			(4	)		6
Contingent consideration fair value adjustments		(7	)		-			(7	)		2			(9	)
Other general and administration		57			55			2			67			(10	)
Total general and administration expense		529			495			34			589			(60	)
Restructuring charge		-			-			-			61			(61	)
Amortization of intangible assets		38			37			1			38			-
Total operating expense	$	3,035		$	2,805		$	230		$	3,046		$	(11	)

(1)

Beginning in the first quarter of 2024, BlackRock, Inc. updated the presentation of the Company’s expense line items within the consolidated statements of income by including a new “sales, asset, and account expense” income statement caption. Such expense line items have been recast for 2022 and 2023 to conform to this new presentation. See page 12 for a recast of 2022 and 2023 expense line items.

Highlights

•

Employee compensation and benefits expense increased $153 million from the first quarter of 2023, reflecting higher incentive compensation, primarily as a result of higher operating income and performance fees.

Employee compensation and benefits expense increased $77 million from the fourth quarter of 2023, reflecting higher seasonal payroll taxes and the impact of higher operating income, partially offset by lower incentive compensation driven by lower performance fees and lower severance.

•

Sales, assets and account expense increased $42 million from the first quarter of 2023 and $33 million from the fourth quarter of 2023, driven by higher direct fund expense and distribution and servicing costs, primarily reflecting higher average AUM. In addition, the increase in direct fund expense from the fourth quarter of 2023 included the impact of certain rebates that seasonally occur in the fourth quarter.

•

General and administrative expense increased $34 million from the first quarter of 2023, primarily due to higher technology and professional services expense including higher transaction-related expense in the current quarter.

General and administrative expense decreased $60 million from the fourth quarter of 2023, primarily due to lower technology and other general and administration expense including lower costs related to legal matters.

•

In the fourth quarter of 2023, a restructuring charge of $61 million, comprised of severance and compensation expense for accelerated vesting of previously granted deferred compensation awards, was recorded in connection with initiatives to reorganize specific platforms, primarily Aladdin and illiquid alternative investments.

7

SUMMARY OF NONOPERATING INCOME (expense), less net income (loss) attributable TO noncontrolling interests

	Three Months									Three Months
	Ended									Ended
	March 31,									December 31,
(in millions), (unaudited)	2024			2023			Change			2023			Change
Nonoperating income (expense), GAAP basis	$	220		$	116		$	104		$	342		$	(122	)
Less: Net income (loss) attributable to   noncontrolling interests ("NCI")		50			12			38			114			(64	)
Nonoperating income (expense), net of NCI		170			104			66			228			(58	)
Less: Hedge gain (loss) on deferred cash   compensation plans(1)		31			17			14			29			2
Nonoperating income (expense), net of NCI, as   adjusted(2)	$	139		$	87		$	52		$	199		$	(60	)
	Three Months									Three Months
	Ended									Ended
	March 31,									December 31,
(in millions), (unaudited)	2024			2023			Change			2023			Change
Net gain (loss) on investments, net of NCI
Private equity	$	8		$	39		$	(31	)	$	68		$	(60	)
Real assets		(3	)		6			(9	)		2			(5	)
Other alternatives(3)		14			6			8			17			(3	)
Other investments(4)		31			12			19			15			16
Hedge gain (loss) on deferred cash   compensation plans(1)		31			17			14			29			2
Subtotal		81			80			1			131			(50	)
Other income/gain (expense/loss)(5)		40			(3	)		43			20			20
Total net gain (loss) on investments, net of NCI		121			77			44			151			(30	)
Interest and dividend income		141			86			55			159			(18	)
Interest expense		(92	)		(59	)		(33	)		(82	)		(10	)
Net interest income (expense)		49			27			22			77			(28	)
Nonoperating income (expense), net of NCI		170			104			66			228			(58	)
Less: Hedge gain (loss) on deferred cash   compensation plans(1)		31			17			14			29			2
Nonoperating income (expense), net of NCI, as   adjusted(2)	$	139		$	87		$	52		$	199		$	(60	)

(1)

Amounts relate to the gains (losses) from economically hedging certain BlackRock deferred cash compensation plans.

(2)

Management believes nonoperating income (expense), net of NCI, as adjusted, is an effective measure for reviewing BlackRock’s nonoperating results, which ultimately impacts BlackRock’s book value. For more information on as adjusted items and the reconciliation to GAAP, see notes to the condensed consolidated statements of income and supplemental information on pages 9 through 11.

(3)

Amounts primarily include net gains (losses) related to credit funds, direct hedge fund strategies and hedge fund solutions.

(4)

Amounts primarily include net gains (losses) related to BlackRock's seed investment portfolio, net of impact of certain hedges.

(5)

Amount for the three months ended March 31, 2024, includes earnings (losses) from certain equity method minority investments, which the Company recorded within nonoperating income (expense) beginning in the first quarter of 2024. Additional amounts include noncash pre-tax gains (losses) related to the revaluation of certain minority investments.

summary of INCOME TAX EXPENSE

	Three Months									Three Months
	Ended									Ended
	March 31,									December 31,
(in millions), (unaudited)	2024			2023			Change			2023				Change
Income tax expense	$	290		$	385		$	(95	)		$	438		$	(148	)
Effective tax rate		15.6	%		25.0	%	(940) bps					24.2	%	(860) bps

Highlights

•

First quarter 2024 income tax expense included a discrete tax benefit of $137 million recognized in connection with the reorganization and establishment of a more efficient global intellectual property and technology platform and corporate structure. This discrete tax benefit has been excluded from as adjusted results due to the nonrecurring nature of the intellectual property reorganization. In addition, first quarter 2024 income tax expense included $28 million of discrete tax benefits, including a benefit related to stock-based compensation awards that vested in the first quarter.

•

First quarter 2023 income tax expense included a $38 million discrete tax benefit related to stock-based compensation awards that vested in the first quarter, offset by a $38 million discrete tax expense related to the resolution of certain outstanding tax matters.

8

RECONCILIATION OF GAAP OPERATING INCOME AND OPERATING MARGIN TO OPERATING INCOME AND OPERATING MARGIN, AS ADJUSTED
	Three Months Ended
	March 31,						December 31,
(in millions), (unaudited)	2024			2023			2023
Operating income, GAAP basis	$	1,693		$	1,438		$	1,585
Non-GAAP expense adjustments:
Compensation expense related to appreciation (depreciation)   on deferred cash compensation plans (a)		27			20			28
Amortization of intangible assets (b)		38			37			38
Acquisition-related compensation costs (b)		2			5			2
Acquisition-related transaction costs (b)(1)		22			-			-
Contingent consideration fair value adjustments (b)		(7	)		-			2
Lease costs - New York (c)		-			11			-
Restructuring charge (d)		-			-			61
Operating income, as adjusted (1)	$	1,775		$	1,511		$	1,716
Revenue, GAAP basis	$	4,728		$	4,243		$	4,631
Non-GAAP adjustments:
Distribution fees		(310	)		(319	)		(303	)
Investment advisory fees		(208	)		(186	)		(199	)
Revenue used for operating margin measurement	$	4,210		$	3,738		$	4,129
Operating margin, GAAP basis		35.8	%		33.9	%		34.2	%
Operating margin, as adjusted (1)		42.2	%		40.4	%		41.6	%

(1)

Amounts included within general and administration expense.

See note (1) to the condensed consolidated statements of income and supplemental information on pages 10 and 11 for more information on as adjusted items.

RECONCILIATION OF GAAP NONOPERATING INCOME (EXPENSE) TO NONOPERATING INCOME (EXPENSE), LESS NET INCOME (LOSS) ATTRIBUTABLE TO NCI, AS ADJUSTED
	Three Months Ended
	March 31,				December 31,
(in millions), (unaudited)	2024		2023		2023
Nonoperating income (expense), GAAP basis	$	220	$	116	$	342
Less: Net income (loss) attributable to NCI		50		12		114
Nonoperating income (expense), net of NCI		170		104		228
Less: Hedge gain (loss) on deferred cash compensation   plans (a)		31		17		29
Nonoperating income (expense), less net income (loss)   attributable to NCI, as adjusted (2)	$	139	$	87	$	199

See notes (1) and (2) to the condensed consolidated statements of income and supplemental information on pages 10 and 11 for more information on as adjusted items.

RECONCILIATION OF GAAP NET INCOME ATTRIBUTABLE TO BLACKROCK TO NET INCOME ATTRIBUTABLE TO BLACKROCK, AS ADJUSTED
	Three Months Ended
	March 31,					December 31,
(in millions, except per share data), (unaudited)	2024			2023		2023
Net income attributable to BlackRock, Inc., GAAP basis	$	1,573		$	1,157	$	1,375
Non-GAAP adjustments(1):
Net impact of hedged deferred cash compensation plans (a)		(3	)		2		(1	)
Amortization of intangible assets (b)		28			28		28
Acquisition-related compensation costs (b)		2			4		1
Acquisition-related transaction costs (b)		15			-		-
Contingent consideration fair value adjustments (b)		(5	)		-		2
Lease costs - New York (c)		-			9		-
Restructuring charge (d)		-			-		46
Income tax matters		(137	)		-		-
Net income attributable to BlackRock, Inc., as adjusted (3)	$	1,473		$	1,200	$	1,451
Diluted weighted-average common shares outstanding		150.1			151.3		150.2
Diluted earnings per common share, GAAP basis	$	10.48		$	7.64	$	9.15
Diluted earnings per common share, as adjusted (3)	$	9.81		$	7.93	$	9.66

(1)

Non-GAAP adjustments, excluding income tax matters, are net of tax.

See note (3) to the condensed consolidated statements of income and supplemental information on page 11 for more information on as adjusted items.

9

NOTES TO CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION(unaudited)

BlackRock reports its financial results in accordance with GAAP; however, management believes evaluating the Company’s ongoing operating results may be enhanced if investors have additional non-GAAP financial measures. Adjustments to GAAP financial measures (“non-GAAP adjustments”) include certain items management deems nonrecurring or that occur infrequently, transactions that ultimately will not impact BlackRock’s book value or certain tax items that do not impact cash flow. Management reviews non-GAAP financial measures, in addition to GAAP financial measures, to assess ongoing operations and considers them to be helpful, for both management and investors, in evaluating BlackRock’s financial performance over time. Management also uses non-GAAP financial measures as a benchmark to compare its performance with other companies and to enhance comparability for the reporting periods presented. Non-GAAP financial measures may pose limitations because they do not include all of BlackRock’s revenue and expense. BlackRock’s management does not advocate that investors consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Non-GAAP financial measures may not be comparable to other similarly titled measures of other companies.

Computations and reconciliations for all periods are derived from the condensed consolidated statements of income as follows:

(1) Operating income, as adjusted, and operating margin, as adjusted: Management believes operating income, as adjusted, and operating margin, as adjusted, are effective indicators of BlackRock’s financial performance over time, and, therefore, provide useful disclosure to investors. Management believes that operating margin, as adjusted, reflects the Company’s long-term ability to manage ongoing costs in relation to its revenues. The Company uses operating margin, as adjusted, to assess the Company’s financial performance, to determine the long-term and annual compensation of the Company’s senior-level employees and to evaluate the Company’s relative performance against industry peers. Furthermore, this metric eliminates margin variability arising from the accounting of revenues and expenses related to distributing different product structures in multiple distribution channels utilized by asset managers.

•

Operating income, as adjusted, includes the following non-GAAP expense adjustments:

(a)

Compensation expense related to appreciation (depreciation) on deferred cash compensation plans. The Company excludes compensation expense related to the market valuation changes on certain deferred cash compensation plans, which the Company hedges economically. For these deferred cash compensation plans, the final value of the deferred amount to be distributed to employees in cash upon vesting is determined based on the returns on specified investment funds. The Company recognizes compensation expense for the appreciation (depreciation) of the deferred cash compensation liability in proportion to the vested amount of the award during a respective period, while the gain (loss) to economically hedge these plans is immediately recognized in nonoperating income (expense), which creates a timing difference impacting net income. This timing difference will reverse and offset to zero over the life of the award at the end of the multi-year vesting period. Management believes excluding market valuation changes related to the deferred cash compensation plans in the calculation of operating income, as adjusted, provides useful disclosure to both management and investors of the Company’s financial performance over time as these amounts are economically hedged, while also increasing comparability with other companies.

(b)

Acquisition related costs. Acquisition related costs include adjustments related to amortization of intangible assets, other acquisition-related costs, including professional fees and compensation costs for nonrecurring retention-related deferred compensation, and contingent consideration fair value adjustments incurred in connection with certain acquisitions. Management believes excluding the impact of these expenses when calculating operating income, as adjusted, provides a helpful indication of the Company’s financial performance over time, thereby providing helpful information for both management and investors while also increasing comparability with other companies.

(c)

Lease costs – New York. In 2023, the Company continued to recognize lease expense within general and administration expense for both its current headquarters located at 50 Hudson Yards in New York and prior headquarters until the Company's lease on its prior headquarters expired in April 2023. The Company began lease payments related to its current headquarters in May 2023, but began recording lease expense in August 2021 when it obtained access to the building to begin its tenant improvements. Prior to the Company’s move to its current headquarters in February 2023, the impact of lease costs related to 50 Hudson Yards was excluded from operating income, as adjusted. In February 2023, the Company completed the majority of its move to 50 Hudson Yards and no longer excluded the impact of these lease costs. Subsequently, from February 2023 through April 2023, the Company excluded the impact of lease costs related to the Company's prior headquarters. Management believes excluding the impact of these respective New York lease costs (“Lease costs – New York”) when calculating operating income, as adjusted, is useful to assess the Company’s financial performance and ongoing operations, and enhances comparability among periods presented.

10

(d)

Restructuring charge. In the fourth quarter of 2023, the Company recorded a restructuring charge, comprised of severance and compensation expense for accelerated vesting of previously granted deferred compensation awards, in connection with initiatives to reorganize specific platforms, primarily Aladdin and illiquid alternative investments. Management believes excluding the impact of these restructuring charges when calculating operating income, as adjusted, is useful to assess the Company’s financial performance and ongoing operations, and enhances comparability among periods presented.

•

Revenue used for calculating operating margin, as adjusted, is reduced to exclude all of the Company’s distribution fees, which are recorded as a separate line item on the condensed consolidated statements of income, as well as a portion of investment advisory fees received that is used to pay distribution and servicing costs. For certain products, based on distinct arrangements, distribution fees are collected by the Company and then passed-through to third-party client intermediaries. For other products, investment advisory fees are collected by the Company and a portion is passed-through to third-party client intermediaries. However, in both structures, the third-party client intermediary similarly owns the relationship with the retail client and is responsible for distributing the product and servicing the client. The amount of distribution and investment advisory fees fluctuates each period primarily based on a predetermined percentage of the value of AUM during the period. These fees also vary based on the type of investment product sold and the geographic location where it is sold. In addition, the Company may waive fees on certain products that could result in the reduction of payments to the third-party intermediaries.

(2) Nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted: Management believes nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted, is an effective measure for reviewing BlackRock’s nonoperating contribution to its results and provides comparability of this information among reporting periods. Nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted, excludes the gain (loss) on the economic hedge of certain deferred cash compensation plans. As the gain (loss) on investments and derivatives used to hedge these compensation plans over time substantially offsets the compensation expense related to the market valuation changes on these deferred cash compensation plans, which is included in operating income, GAAP basis, management believes excluding the gain (loss) on the economic hedge of the deferred cash compensation plans when calculating nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted, provides a useful measure for both management and investors of BlackRock’s nonoperating results that impact book value.

(3) Net income attributable to BlackRock, Inc., as adjusted: Management believes net income attributable to BlackRock, Inc., as adjusted, and diluted earnings per common share, as adjusted, are useful measures of BlackRock’s profitability and financial performance. Net income attributable to BlackRock, Inc., as adjusted, equals net income attributable to BlackRock, Inc., GAAP basis, adjusted for certain items management deems nonrecurring or that occur infrequently, transactions that ultimately will not impact BlackRock’s book value or certain tax items that do not impact cash flow.

For each period presented, the non-GAAP adjustments were tax effected at the respective blended rates applicable to the adjustments. Amount for income tax matters includes a discrete tax benefit of $137 million recognized in connection with the reorganization and establishment of a more efficient global intellectual property and technology platform and corporate structure. This discrete tax benefit has been excluded from as adjusted results due to the nonrecurring nature of the intellectual property reorganization.

Per share amounts reflect net income attributable to BlackRock, Inc., as adjusted, divided by diluted weighted-average common shares outstanding.

(4)ACV: Management believes ACV is an effective metric for reviewing BlackRock’s technology services’ ongoing contribution to its operating results and provides comparability of this information among reporting periods while also providing a useful supplemental metric for both management and investors of BlackRock’s growth in technology services revenue over time, as it is linked to the net new business in technology services. ACV represents forward-looking, annualized estimated value of the recurring subscription fees under client contracts, assuming all client contracts that come up for renewal are renewed, unless we have received a notice of termination, even though such notice may not be effective until a later date. ACV also includes the annualized estimated value of new sales, for existing and new clients, when we execute client contracts, even though the recurring fees may not be effective until a later date and excludes nonrecurring fees such as implementation and consulting fees.

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Recast of 2023 and 2022 operating expense line items(1)

2023 OPERATING EXPENSE LINE ITEM RECAST
	Three Months Ended																Year Ended
	March 31				June 30				September 30				December 31				December 31
	Operating				Operating				Operating				Operating				Operating
	Expense		Previously		Expense		Previously		Expense		Previously		Expense		Previously		Expense		Previously
(in millions), (unaudited)	Recast		Reported		Recast		Reported		Recast		Reported		Recast		Reported		Recast		Reported
Expense
Employee compensation and benefits	$	1,427	$	1,427	$	1,429	$	1,429	$	1,420	$	1,420	$	1,503	$	1,503	$	5,779	$	5,779
Sales, asset and account expense
Distribution and servicing costs		505		505		518		518		526		526		502		502		2,051		2,051
Direct fund expenses		315		315		344		344		354		354		318		318		1,331		1,331
Sub-advisory and other		26		-		27		-		28		-		35		-		116		-
Total sales, asset and account expense		846		820		889		862		908		880		855		820		3,498		3,382
General and administration		495		521		493		520		518		546		589		624		2,095		2,211
Restructuring charge		-		-		-		-		-		-		61		61		61		61
Amortization of intangible assets		37		37		37		37		39		39		38		38		151		151
Total expense	$	2,805	$	2,805	$	2,848	$	2,848	$	2,885	$	2,885	$	3,046	$	3,046	$	11,584	$	11,584
		-		-		-		-		-		-		-		-		-		-
2022 OPERATING EXPENSE LINE ITEM RECAST
	Three Months Ended																Year Ended
	March 31				June 30				September 30				December 31				December 31
	Operating				Operating				Operating				Operating				Operating
	Expense		Previously		Expense		Previously		Expense		Previously		Expense		Previously		Expense		Previously
(in millions), (unaudited)	Recast		Reported		Recast		Reported		Recast		Reported		Recast		Reported		Recast		Reported
Expense
Employee compensation and benefits	$	1,498	$	1,498	$	1,414	$	1,414	$	1,339	$	1,339	$	1,430	$	1,430	$	5,681	$	5,681
Sales, asset and account expense
Distribution and servicing costs		574		574		572		572		536		536		497		497		2,179		2,179
Direct fund expenses		329		329		304		304		318		318		275		275		1,226		1,226
Sub-advisory and other		25		-		25		-		26		-		27		-		103		-
Total sales, asset and account expense		928		903		901		876		880		854		799		772		3,508		3,405
General and administration		471		496		505		530		528		554		553		580		2,057		2,160
Restructuring charge		-		-		-		-		-		-		91		91		91		91
Amortization of intangible assets		38		38		38		38		38		38		37		37		151		151
Total expense	$	2,935	$	2,935	$	2,858	$	2,858	$	2,785	$	2,785	$	2,910	$	2,910	$	11,488	$	11,488
Check		-		-		-		-		-		-		-		-		-		-

(1) Beginning in the first quarter of 2024, BlackRock, Inc. updated the presentation of the Company’s expense line items within the consolidated statements of income by including a new “sales, asset, and account expense” income statement caption, which is comprised of distribution and servicing costs, direct fund expense, and sub-advisory and other sales, asset, and account-based expense. Sub-advisory and other expense was previously reported within general and administration expense. Management believes the inclusion of this new sales, asset, and account expense caption provides both management and investors useful disclosure of the Company’s variable, non-compensation, sales, asset, and account-based expense over time. We have recast the Company’s 2022 and 2023 expense line items to conform to this new presentation.

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FORWARD-LOOKING STATEMENTS

This earnings release, and other statements that BlackRock may make, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to BlackRock’s future financial or business performance, strategies or expectations. Forward-looking statements are typically identified by words or phrases such as “trend,” “potential,” “opportunity,” “pipeline,” “believe,” “comfortable,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may” and similar expressions.

BlackRock cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made, and BlackRock assumes no duty to and does not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance.

BlackRock has previously disclosed risk factors in its Securities and Exchange Commission (“SEC”) reports. These risk factors and those identified elsewhere in this earnings release, among others, could cause actual results to differ materially from forward-looking statements or historical performance and include: (1) the introduction, withdrawal, success and timing of business initiatives and strategies; (2) changes and volatility in political, economic or industry conditions, the interest rate environment, foreign exchange rates or financial and capital markets, which could result in changes in demand for products or services or in the value of AUM; (3) the relative and absolute investment performance of BlackRock’s investment products; (4) BlackRock’s ability to develop new products and services that address client preferences; (5) the impact of increased competition; (6) the impact of future acquisitions or divestitures, including the acquisition of Global Infrastructure Management, LLC (referred to herein as Global Infrastructure Partners ("GIP") or the "GIP Transaction"); (7) BlackRock’s ability to integrate acquired businesses successfully, including GIP; (8) risks related to the GIP Transaction, including the possibility that the GIP Transaction does not close, the failure to satisfy the closing conditions, the possibility that expected synergies and value creation from the GIP Transaction will not be realized, or will not be realized within the expected time period, and impacts to business and operational relationships related to disruptions from the GIP Transaction; (9) the unfavorable resolution of legal proceedings; (10) the extent and timing of any share repurchases; (11) the impact, extent and timing of technological changes and the adequacy of intellectual property, data, information and cybersecurity protection; (12) the failure to effectively manage the development and use of artificial intelligence; (13) attempts to circumvent BlackRock’s operational control environment or the potential for human error in connection with BlackRock’s operational systems; (14) the impact of legislative and regulatory actions and reforms, regulatory, supervisory or enforcement actions of government agencies and governmental scrutiny relating to BlackRock; (15) changes in law and policy and uncertainty pending any such changes; (16) any failure to effectively manage conflicts of interest; (17) damage to BlackRock’s reputation; (18) increasing focus from stakeholders regarding ESG matters; (19) geopolitical unrest, terrorist activities, civil or international hostilities, and other events outside BlackRock’s control, including wars, natural disasters and health crises, which may adversely affect the general economy, domestic and local financial and capital markets, specific industries or BlackRock; (20) climate-related risks to BlackRock's business, products, operations and clients; (21) the ability to attract, train and retain highly qualified and diverse professionals; (22) fluctuations in the carrying value of BlackRock’s economic investments; (23) the impact of changes to tax legislation, including income, payroll and transaction taxes, and taxation on products, which could affect the value proposition to clients and, generally, the tax position of the Company; (24) BlackRock’s success in negotiating distribution arrangements and maintaining distribution channels for its products; (25) the failure by key third-party providers of BlackRock to fulfill their obligations to the Company; (26) operational, technological and regulatory risks associated with BlackRock’s major technology partnerships; (27) any disruption to the operations of third parties whose functions are integral to BlackRock’s ETF platform; (28) the impact of BlackRock electing to provide support to its products from time to time and any potential liabilities related to securities lending or other indemnification obligations; and (29) the impact of problems, instability or failure of other financial institutions or the failure or negative performance of products offered by other financial institutions.

BlackRock’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and BlackRock’s subsequent filings with the SEC, accessible on the SEC’s website at www.sec.gov and on BlackRock’s website at www.blackrock.com, discuss these factors in more detail and identify additional factors that can affect forward-looking statements. The information contained on the Company’s website is not a part of this earnings release.

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PERFORMANCE NOTES

Past performance is not indicative of future results. Except as specified, the performance information shown is as of March 31, 2024 and is based on preliminary data available at that time. The performance data shown reflects information for all actively and passively managed equity and fixed income accounts, including US registered investment companies, European-domiciled retail funds and separate accounts for which performance data is available, including performance data for high net worth accounts available as of February 29, 2024. The performance data does not include accounts terminated prior to March 31, 2024 and accounts for which data has not yet been verified. If such accounts had been included, the performance data provided may have substantially differed from that shown.

Performance comparisons shown are gross-of-fees for institutional and high net worth separate accounts, and net-of-fees for retail funds. The performance tracking shown for index accounts is based on gross-of-fees performance and includes all institutional accounts and all iShares® funds globally using an index strategy. AUM information is based on AUM available as of March 31, 2024 for each account or fund in the asset class shown without adjustment for overlapping management of the same account or fund. Fund performance reflects the reinvestment of dividends and distributions.

Performance shown is derived from applicable benchmarks or peer median information, as selected by BlackRock, Inc. Peer medians are based in part on data either from Lipper, Inc. or Morningstar, Inc. for each included product.

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