BlackRock (BLK) 8-K BlackRock Reports First Quarter 2014 Diluted EPS of $4.40, or $4.43 as adjusted

Exhibit 99.1

Tom Wojcik, Investor Relations	Brian Beades, Media Relations
212.810.8127	212.810.5596

BlackRock Reports First Quarter 2014 Diluted EPS of $4.40, or $4.43 as adjusted

• 12% AUM growth from the first quarter of 2013

• $26.7 billion of long-term net inflows for the first quarter of 2014

• 16% operating income growth (15% as adjusted) from the first quarter of 2013

• 39.4% operating margin (41.4% as adjusted) for the first quarter of 2014 improved 230 basis points (140 basis points as adjusted) from the first quarter of 2013

• 22% diluted EPS growth (21% as adjusted) from the first quarter of 2013

• 15% quarterly dividend increase to $1.93 per share and consistent capital management with $250 million of quarterly share repurchases

FINANCIAL RESULTS

(Amounts in millions except per share data), (unaudited)	Q1 2014			Q1 2013			Change			Q4 2013			Change
AUM	$	4,400,925		$	3,936,409			12	%	$	4,324,088			2	%
GAAP basis:
Revenue	$	2,670		$	2,449			9	%	$	2,777			(4	%)
Operating income	$	1,051		$	909			16	%	$	1,133			(7	%)
Operating margin		39.4	%		37.1	%		230	bps		40.8	%		(140	bps)
Net income(1)	$	756		$	632			20	%	$	841			(10	%)
Diluted EPS	$	4.40		$	3.62			22	%	$	4.86			(9	%)
Weighted average diluted shares		171.9			174.6			(2	%)		173.0			(1	%)
As Adjusted:
Operating income(2)	$	1,062		$	921			15	%	$	1,143			(7	%)
Operating margin(2)		41.4	%		40.0	%		140	bps		42.7	%		(130	bps)
Net income(1) (2)	$	762		$	637			20	%	$	851			(10	%)
Diluted EPS(2)	$	4.43		$	3.65			21	%	$	4.92			(10	%)

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

⁽²⁾ See notes (1) through (5) to the Condensed Consolidated Statements of Income and Supplemental Information on pages 11 through 14 for more information on as adjusted items and the reconciliation to GAAP.

New York, April 17, 2014 — BlackRock, Inc. (NYSE:BLK) today reported financial results for the three months ended March 31, 2014.

“The strength and stability of our diversified platform again drove our results, with first quarter revenue up 9% and as adjusted operating income up 15% year-over-year,” commented Laurence D. Fink, Chairman and CEO of BlackRock. “Our $26.7 billion in long-term net inflows for the quarter reflect positive flows across all asset classes, client types and regions, and our focus on long-term strategic themes continued to resonate, as clients look to us for investment solutions.

“BlackRock’s retail business continued to build on the strength exhibited in 2013, with $14.0 billion of net inflows, led by further acceleration in our international franchise, which contributed $9.8 billion of net inflows. U.S. Retail flows were driven by investor demand for top-tier non-traditional income solutions, led by our Strategic Income Opportunities fund, which raised $2.7 billion in the quarter and has generated $10 billion of flows in the last five quarters. Additionally, we saw strong client interest in our retail alternatives offerings, with $2.1 billion of net new flows in the quarter, highlighting the momentum BlackRock is seeing across our alternatives platform.

“The fixed income landscape is undergoing significant change, driving both institutional and retail clients to re-examine their fixed income strategies. We continue to witness a shift towards unconstrained fixed income and increased usage of liability driven investing as large pension plans take advantage of strong equity markets and improved funding ratios to immunize their portfolios. The depth and breadth of our solutions offering, coupled with strong relative fixed income investment performance, position us to gain market share as the landscape evolves.

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“We are pleased with continued strong investment performance across active fixed income, multi-asset and alternatives. In our U.S. active equity business, where we’ve invested in new managers, we are seeing improved performance, though we recognize that it will take time to build long-term track records.

“We are encouraged by the quality of conversations we are having with clients and the subsequent momentum we are seeing in our business. Clients increasingly have an appreciation for our focus on integrating technology and risk management into our investment approach and our ability to harness our collective intelligence across the firm – both of which differentiate BlackRock as an active manager.

“The recently announced management repositioning reflects the focus we’ve had for several years now to ensure we are building a strong and deep bench of executive talent across the company. We will continue to nurture our homegrown talent and supplement it by attracting top leaders from outside the firm. Finally, I want to once again express my gratitude to BlackRock employees for their commitment to delivering excellence for our clients and the firm.”

RESULTS BY CLIENT TYPE

(Dollar amounts in millions), (unaudited)	Q1 2014 Net flows			March 31, 2014 AUM		Q1 2014 Base Fees(1)		March 31, 2014 AUM % of Total			Q1 2014 Base Fees(1) % of Total
Retail	$	14,002		$	508,717	$	785		12	%		35	%
iShares		7,759			930,380		765		23	%		35	%
Institutional:
Active		(12,611	)		939,654		455		23	%		20	%
Index		17,577			1,726,855		212		42	%		10	%
Total institutional		4,966			2,666,509		667		65	%		30	%
Total long-term	$	26,727		$	4,105,606	$	2,217		100	%		100	%

RESULTS BY PRODUCT

(Dollar amounts in millions), (unaudited)	Q1 2014 Net flows		March 31, 2014 AUM		Q1 2014 Base Fees(1)		March 31, 2014 AUM % of Total			Q1 2014 Base Fees(1) % of Total
Equity	$	3,824	$	2,347,934	$	1,255		57	%		57	%
Fixed income		15,642		1,289,014		495		31	%		22	%
Multi-asset		4,989		353,231		286		9	%		13	%
Alternatives		2,272		115,427		181		3	%		8	%
Total long-term	$	26,727	$	4,105,606	$	2,217		100	%		100	%

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

Long-Term Business Highlights

Long-term net inflows were positive across all regions, with net inflows of $7.5 billion, $6.0 billion and $13.2 billion from clients in the Americas, EMEA and Asia-Pacific, respectively. At March 31, 2014, BlackRock managed 60% of long-term AUM for investors in the Americas and 40% for international clients.

A discussion of the Company’s net flows by client type for the first quarter of 2014 is presented below.

• Retaillong-term net inflows of $14.0 billion included net inflows of $4.2 billion in the United States and $9.8 billion internationally. Long-term net inflows were diversified across all asset classes, led by fixed income net inflows of $6.1 billion, which reflected strong interest in unconstrained fixed income offerings, including $2.7 billion of net inflows into our Strategic Income Opportunities fund. Multi-asset class net inflows of $3.6 billion demonstrated demand for our flagship Global Allocation and Multi-Asset Income funds. Equity net inflows of $2.2 billion were driven by flows into our European Equities suite. Alternative mutual funds generated more than $1 billion in net inflows for the fourth straight quarter, with our Global Long/Short Credit and Global Long/Short Equity funds each gathering more than $0.7 billion in assets.

• iShares long-term net inflows of $7.8 billion included U.S. and EuropeaniShares net inflows of $3.2 billion and $4.8 billion, respectively. Fixed income net inflows of $6.6 billion represented a leading share of fixed income industry ETF flows for the quarter. Equity net inflows totaled $0.9 billion, with strength in developed market equity flows largely offset by outflows from emerging markets products.

• Institutional activelong-term net outflows of $12.6 billion included equity and fixed income net outflows of $8.0 billion and $7.0 billion, respectively. Scientific active equity outflows of $4.1 billion were primarily due to a redemption from a single client while fundamental equity outflows of $3.9 billion were focused in the United States and driven by a large subadvisory client. Fundamental fixed income outflows of $7.5 billion were primarily driven by the acquisition of a client by the affiliate of a competing asset manager. Net inflows of $2.9 billion into multi-asset class products reflected ongoing demand for ourLifePath^® target-date suite.

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• Institutional indexlong-term net inflows of $17.6 billion were driven by fixed income net inflows of $10.0 billion, which included strong liability driven investment activity. Equity net inflows of $8.7 billion reflected flows into developed market mandates. Commodities contributed additional inflows of $0.5 billion. Long-term net inflows were partially offset by multi-asset class net outflows of $1.6 billion.

Cash management AUMdecreased 4% to $263.5 billion.

Advisory AUMdecreased 12% to $31.8 billion due to portfolio liquidations. The execution of these liquidations contributed toBlackRock Solutions^® and advisory revenue in the quarter.

INVESTMENT PERFORMANCE AT MARCH 31, 2014⁽¹⁾

	One-year period			Three-year period			Five-year period
Fixed Income:
Actively managed products above benchmark or peer median
Taxable		77	%		89	%		86	%
Tax-exempt		57	%		68	%		70	%
Passively managed products within or above applicable tolerance		93	%		98	%		89	%
Equity:
Actively managed products above benchmark or peer median
Fundamental		55	%		43	%		47	%
Scientific		89	%		95	%		93	%
Passively managed products within or above applicable tolerance		97	%		98	%		97	%

⁽¹⁾  Past performance is not indicative of future results. The performance information shown is based on preliminary available data. Please refer to page 15 for performance disclosure detail.

Teleconference, Webcast and Presentation Information

Chairman and Chief Executive Officer, Laurence D. Fink, and Chief Financial Officer, Gary S. Shedlin, will host a teleconference call for investors and analysts on Thursday, April 17, 2014 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, (800) 374-0176, or from outside the United States, (706) 679-8281, shortly before 8:30 a.m. and reference the BlackRock Conference Call (ID Number 22292360). 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 Thursday, April 17, 2014 and ending at midnight on Thursday, May 1, 2014. To access the replay of the teleconference, callers from the United States should dial (800) 585-8367 and callers from outside the United States should dial (404) 537-3406 and enter the Conference ID Number 22292360. To access the webcast, please visit the investor relations section ofwww.blackrock.com.

About BlackRock

BlackRock is a leader in investment management, risk management and advisory services for institutional and retail clients worldwide. At March 31, 2014, BlackRock’s AUM was $4.401 trillion. BlackRock helps clients meet their goals and overcome challenges with a range of products that include separate accounts, mutual funds,iShares^® (exchange-traded funds), and other pooled investment vehicles. BlackRock also offers risk management, advisory and enterprise investment system services to a broad base of institutional investors throughBlackRock Solutions^®. Headquartered in New York City, as of March 31, 2014, the firm had approximately 11,500 employees in more than 30 countries and a major presence in key global markets, including North and South America, Europe, Asia, Australia and the Middle East and Africa. For additional information, please visit the Company’s website atwww.blackrock.com.

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CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION

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

	Three Months Ended March 31,										Three Months Ended December 31, 2013
	2014			2013			Change							Change
Revenue
Investment advisory, administration fees and securities lending revenue	$	2,291		$	2,129		$	162			$	2,280		$	11
Investment advisory performance fees		158			108			50				268			(110	)
BlackRock Solutions and advisory		154			126			28				157			(3	)
Distribution fees		19			17			2				19			—
Other revenue		48			69			(21	)			53			(5	)
Total revenue		2,670			2,449			221				2,777			(107	)
Expenses
Employee compensation and benefits		982			905			77				925			57
Distribution and servicing costs		89			91			(2	)			87			2
Amortization of deferred sales commissions		15			12			3				14			1
Direct fund expenses		179			161			18				167			12
General and administration		313			331			(18	)			410			(97	)
Amortization of intangible assets		41			40			1				41			—
Total expenses		1,619			1,540			79				1,644			(25	)
Operating income		1,051			909			142				1,133			(82	)
Nonoperating income (expense)
Net gain (loss) on investments		76			62			14				70			6
Net gain (loss) on consolidated variable interest entities		(16	)		27			(43	)			2			(18	)
Interest and dividend income		10			6			4				4			6
Interest expense		(53	)		(54	)		1				(52	)		(1	)
Total nonoperating income (expense)		17			41			(24	)			24			(7	)
Income before income taxes		1,068			950			118				1,157			(89	)
Income tax expense		324			284			40				307			17
Net income		744			666			78				850			(106	)
Less:
Net income (loss) attributable to noncontrolling interests		(12	)		34			(46	)			9			(21	)
Net income attributable to BlackRock, Inc.	$	756		$	632		$	124			$	841		($	85	)
Weighted-average common shares outstanding
Basic		169,081,421			171,301,800			(2,220,379	)			169,010,606			70,815
Diluted		171,933,803			174,561,132			(2,627,329	)			172,999,529			(1,065,726	)
Earnings per share attributable to BlackRock, Inc. common stockholders (5)
Basic	$	4.47		$	3.69		$	0.78			$	4.98		($	0.51	)
Diluted	$	4.40		$	3.62		$	0.78			$	4.86		($	0.46	)
Cash dividends declared and paid per share	$	1.93		$	1.68		$	0.25			$	1.68		$	0.25
Supplemental information:
AUM (end of period)	$	4,400,925		$	3,936,409		$	464,516			$	4,324,088		$	76,837
Shares outstanding (end of period)		169,138,109			171,102,532			(1,964,423	)			168,724,763			413,346
GAAP:
Operating margin		39.4	%		37.1	%		230		bps		40.8	%		(140	)	bps
Effective tax rate		30.0	%		31.0	%		(100	)	bps		26.7	%		330		bps
As adjusted:
Operating income (1)	$	1,062		$	921		$	141			$	1,143		($	81	)
Operating margin (1)		41.4	%		40.0	%		140		bps		42.7	%		(130	)	bps
Nonoperating income (expense), less net income (loss) attributable to noncontrolling interests (2)	$	26		$	3		$	23			$	13		$	13
Net income attributable to BlackRock, Inc. (3) (4)	$	762		$	637		$	125			$	851		($	89	)
Diluted earnings attributable to BlackRock, Inc. common stockholders per share (3) (4) (5)	$	4.43		$	3.65		$	0.78			$	4.92		($	0.49	)
Effective tax rate		30.0	%		31.0	%		(100	)	bps		26.5	%		350		bps

See pages 11-14 for the reconciliation to GAAP and notes (1) through (5) for more information on as adjusted items.

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ASSETS UNDER MANAGEMENT

(Dollar amounts in millions), (unaudited)

Current Quarter Component Changes by Client Type and Product

	December 31, 2013		Net subscriptions (redemptions)			Market change		FX impact (1)			March 31, 2014		Average AUM (2)
Retail:
Equity	$	203,035	$	2,183		$	2,715	$	305		$	208,238	$	204,108
Fixed income		151,475		6,058			2,854		61			160,448		156,082
Multi-asset		117,054		3,636			765		93			121,548		118,893
Alternatives		16,213		2,125			131		14			18,483		17,278
Retail subtotal		487,777		14,002			6,465		473			508,717		496,361
iShares:
Equity		718,135		934			5,774		(870	)		723,973		711,373
Fixed income		178,835		6,624			2,860		(297	)		188,022		185,214
Multi-asset		1,310		110			23		(6	)		1,437		1,374
Alternatives		16,092		91			777		(12	)		16,948		16,692
iShares subtotal		914,372		7,759			9,434		(1,185	)		930,380		914,653
Institutional:
Active:
Equity		138,726		(8,032	)		1,508		172			132,374		135,369
Fixed income		505,109		(7,023	)		10,768		838			509,692		508,127
Multi-asset		215,276		2,850			5,660		79			223,865		220,506
Alternatives		73,299		(406	)		676		154			73,723		73,550
Active subtotal		932,410		(12,611	)		18,612		1,243			939,654		937,552
Index:
Equity		1,257,799		8,739			14,818		1,993			1,283,349		1,257,400
Fixed income		406,767		9,983			12,646		1,456			430,852		417,821
Multi-asset		7,574		(1,607	)		346		68			6,381		6,662
Alternatives		5,510		462			278		23			6,273		5,972
Index subtotal		1,677,650		17,577			28,088		3,540			1,726,855		1,687,855
Institutional subtotal		2,610,060		4,966			46,700		4,783			2,666,509		2,625,407
Long-term		4,012,209		26,727			62,599		4,071			4,105,606	$	4,036,421
Cash management		275,554		(12,432	)		126		285			263,533
Advisory(3)		36,325		(3,773	)		235		(1,001	)		31,786
Total	$	4,324,088	$	10,522		$	62,960	$	3,355		$	4,400,925

Current Quarter Component Changes by Product

	December 31, 2013		Net subscriptions (redemptions)			Market change		FX impact (1)			March 31, 2014		Average AUM (2)
Equity:
Active	$	317,262	$	(6,916	)	$	4,117	$	387		$	314,850	$	314,522
iShares		718,135		934			5,774		(870	)		723,973		711,373
Fixed income:
Active		652,209		(1,458	)		13,530		870			665,151		659,491
iShares		178,835		6,624			2,860		(297	)		188,022		185,214
Multi-asset		341,214		4,989			6,794		234			353,231		347,435
Alternatives:
Core		85,026		1,934			807		98			87,865		86,402
Currency and commodities(4)		26,088		338			1,055		81			27,562		27,090
Subtotal		2,318,769		6,445			34,937		503			2,360,654		2,331,527
Non-ETF Index:
Equity		1,282,298		9,806			14,924		2,083			1,309,111		1,282,355
Fixed income		411,142		10,476			12,738		1,485			435,841		422,539
Subtotal Non-ETF Index		1,693,440		20,282			27,662		3,568			1,744,952		1,704,894
Long-term	$	4,012,209	$	26,727		$	62,599	$	4,071		$	4,105,606	$	4,036,421

⁽¹⁾  Foreign exchange reflects the impact of converting non-U.S. dollar denominated AUM into U.S. 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 long-term portfolio liquidation assignments.

⁽⁴⁾  Amounts include commodity iShares.

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ASSETS UNDER MANAGEMENT

(Dollar amounts in millions), (unaudited)

Year-over-Year Component Changes by Client Type and Product

	March 31, 2013		Net subscriptions (redemptions)			Adjustments (1)			Acquisitions (2)		Market change			FX impact (3)			March 31, 2014		Average AUM (4)
Retail:
Equity	$	169,402	$	6,434		$	13,066		$	—	$	16,430		$	2,906		$	208,238	$	182,265
Fixed income		143,711		14,819			3,897			—		(2,592	)		613			160,448		147,871
Multi-asset		97,373		15,569			2,663			—		5,790			153			121,548		108,386
Alternatives		10,655		7,190			—			136		218			284			18,483		14,366
Retail subtotal		421,141		44,012			19,626			136		19,846			3,956			508,717		452,888
iShares:
Equity		588,694		48,773			—			13,021		71,236			2,249			723,973		653,926
Fixed income		189,501		189			—			1,294		(4,655	)		1,693			188,022		185,498
Multi-asset		1,035		336			—			—		79			(13	)		1,437		1,218
Alternatives		23,546		(3,164	)		—			1,645		(5,125	)		46			16,948		18,327
iShares subtotal		802,776		46,134			—			15,960		61,535			3,975			930,380		858,969
Institutional:
Active:
Equity		130,138		(18,893	)		—			—		19,130			1,999			132,374		132,312
Fixed income		505,391		(2,808	)		—			—		2,846			4,263			509,692		503,606
Multi-asset		175,524		25,973			3,335			—		13,229			5,804			223,865		196,969
Alternatives		67,688		(7,513	)		—			10,836		2,626			86			73,723		69,168
Active subtotal		878,741		(3,241	)		3,335			10,836		37,831			12,152			939,654		902,055
Index:
Equity		1,104,361		3,096			(18,238	)		—		184,591			9,539			1,283,349		1,191,932
Fixed income		406,930		17,529			(4,723	)		—		(2,651	)		13,767			430,852		408,955
Multi-asset		9,634		(3,620	)		—			—		375			(8	)		6,381		8,173
Alternatives		5,672		485			—			—		(145	)		261			6,273		5,656
Index subtotal		1,526,597		17,490			(22,961	)		—		182,170			23,559			1,726,855		1,614,716
Institutional subtotal		2,405,338		14,249			(19,626	)		10,836		220,001			35,711			2,666,509		2,516,771
Long-term		3,629,255		104,395			—			26,932		301,382			43,642			4,105,606	$	3,828,628
Cash management		261,329		(2,541	)		—			—		419			4,326			263,533
Advisory(5)		45,825		(12,105	)		—			—		(241	)		(1,693	)		31,786
Total	$	3,936,409	$	89,749		$	—		$	26,932	$	301,560		$	46,275		$	4,400,925

Year-over-Year Component Changes by Product

	March 31, 2013		Net subscriptions (redemptions)			Adjustments (1)			Acquisitions (2)		Market change			FX impact (3)			March 31, 2014		Average AUM (4)
Equity:
Active	$	291,759	$	(15,418	)	$	—		$	—	$	33,913		$	4,596		$	314,850	$	301,043
iShares		588,694		48,773			—			13,021		71,236			2,249			723,973		653,926
Fixed income:
Active		648,865		11,364			—			—		164			4,758			665,151		649,856
iShares		189,501		189			—			1,294		(4,655	)		1,693			188,022		185,498
Multi-asset		283,566		38,258			5,998			—		19,473			5,936			353,231		314,746
Alternatives:
Core		69,943		3,127			—			10,972		3,020			803			87,865		77,901
Currency and commodities (6)		37,618		(6,129	)		—			1,645		(5,446	)		(126	)		27,562		29,616
Subtotal		2,109,946		80,164			5,998			26,932		117,705			19,909			2,360,654		2,212,586
Non-ETF Index:
Equity		1,112,142		6,055			(5,172	)		—		186,238			9,848			1,309,111		1,205,466
Fixed income		407,167		18,176			(826	)		—		(2,561	)		13,885			435,841		410,576
SubtotalNon- ETF Index		1,519,309		24,231			(5,998	)		—		183,677			23,733			1,744,952		1,616,042
Long-term	$	3,629,255	$	104,395		$	—		$	26,932	$	301,382		$	43,642		$	4,105,606	$	3,828,628

⁽¹⁾  Amounts include $19.6 billion of AUM related to fund ranges reclassed from institutional to retail and $6.0 billion of AUM reclassed from non-ETF index equity and fixed income to multi-asset.

⁽²⁾  Amounts represent $16.0 billion of AUM acquired in the Credit Suisse ETF acquisition in July 2013 and $11.0 billion of AUM acquired in the MGPA acquisition in October 2013.

⁽³⁾  Foreign exchange reflects the impact of converting non-U.S. dollar denominated AUM into U.S. dollars for reporting purposes.

⁽⁴⁾  Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing thirteen months.

⁽⁵⁾  Advisory AUM represents long-term portfolio liquidation assignments.

⁽⁶⁾  Amounts include commodity iShares.

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SUMMARY OF REVENUES

(Dollar amounts in millions), (unaudited)

	Three Months Ended March 31,				$ Change			Three Months Ended December 31, 2013		$ Change
	2014		2013
Investment advisory, administration fees and securities lending revenue:
Equity:
Active	$	463	$	433	$	30		$	451	$	12
iShares		634		571		63			646		(12	)
Fixed income:
Active		324		312		12			321		3
iShares		113		116		(3	)		115		(2	)
Multi-asset		286		248		38			276		10
Alternatives:
Core		159		136		23			162		(3	)
Currency and commodities		22		30		(8	)		25		(3	)
Subtotal		2,001		1,846		155			1,996		5
Non-ETF Index:
Equity		158		140		18			148		10
Fixed income		58		57		1			59		(1	)
Subtotal Non-ETF Index		216		197		19			207		9
Long-term		2,217		2,043		174			2,203		14
Cash management		74		86		(12	)		77		(3	)
Total base fees		2,291		2,129		162			2,280		11
Investment advisory performance fees:
Equity		22		17		5			46		(24	)
Fixed income		8		1		7			13		(5	)
Multi-asset		3		7		(4	)		10		(7	)
Alternatives		125		83		42			199		(74	)
Total		158		108		50			268		(110	)
BlackRock Solutions and advisory		154		126		28			157		(3	)
Distribution fees		19		17		2			19		—
Other revenue		48		69		(21	)		53		(5	)
Total revenue	$	2,670	$	2,449	$	221		$	2,777	($	107	)

Highlights

• Investment advisory, administration fees and securities lending revenue increased $162 million from the first quarter of 2013 due to growth in long-term average AUM. Securities lending fees of $105 million in the current quarter decreased $7 million from the first quarter of 2013, primarily reflecting lower spreads, partially offset by an increase in average balances of securities on loan.

Investment advisory, administration fees and securities lending revenue increased $11 million from the fourth quarter of 2013 due to growth in long-term average AUM, partially offset by the effect of two fewer days in the quarter.

• Performance fees increased $50 million from the first quarter of 2013, primarily reflecting a large fee associated with the planned final liquidation of the closed-end mortgage fund that was partially liquidated in the fourth quarter of 2013.

Performance fees declined $110 million from the fourth quarter of 2013 due to the seasonally higher number of funds with performance measurement locks in the fourth quarter.

• BlackRock Solutionsand advisory revenue increased $28 million from the first quarter of 2013, due to higher revenue from advisory assignments and higher revenue from Aladdin^® mandates.BlackRock Solutions and advisory revenue included $109 million inAladdin business revenues in the current quarter compared with $99 million in the first quarter of 2013.

• Other revenue decreased $21 million from the first quarter of 2013 due to lower transition management service fees and lower earnings from certain strategic investments.

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SUMMARY OF EXPENSES

(Dollar amounts in millions), (unaudited)

	Three Months Ended March 31,							Three Months Ended December 31,2013
	2014		2013		$ Change					$ Change
Operating Expenses
Employee compensation and benefits	$	982	$	905	$	77		$	925	$	57
Distribution and servicing costs		89		91		(2	)		87		2
Amortization of deferred sales commissions		15		12		3			14		1
Direct fund expenses		179		161		18			167		12
General and administration		313		331		(18	)		410		(97	)
Amortization of intangible assets		41		40		1			41		—
Total Operating Expenses	$	1,619	$	1,540	$	79		$	1,644	($	25	)
Income tax expense	$	324	$	284	$	40		$	307	$	17

Highlights

• Employee compensation and benefits increased $77 million from the first quarter of 2013, reflecting higher headcount and higher incentive compensation driven by higher operating income.

Employee compensation and benefits increased $57 million from the fourth quarter of 2013, primarily reflecting higher seasonal employer payroll taxes.

• General and administration expenses decreased $18 million from the first quarter of 2013, primarily related to the impact of closed-end fund launch costs in the first quarter of 2013, a one-time benefit from the reversal of a real estate-related retirement obligation which is no longer required to be funded and lower other expenses, partially offset by foreign currency exchange movements.

General and administration expenses decreased $97 million from the fourth quarter of 2013, primarily reflecting the timing of marketing and promotional spend and professional expenses, and lower other expenses. The current quarter also reflected the previously mentioned one-time real estate benefit while the fourth quarter of 2013 reflected various lease exit costs.

• The first quarter GAAP effective income tax rate was 30.0% compared with 31.0% for the first quarter of 2013. The fourth quarter of 2013 GAAP effective income tax rate was 26.7% and benefited from certain nonrecurring items.

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SUMMARY OF NONOPERATING INCOME (EXPENSE)

(Dollar amounts in millions), (unaudited)

				Three Months Ended March 31,									Three Months Ended December 31, 2013
				2014			2013			$ Change						$ Change
Nonoperating income (expense), GAAP basis				$	17		$	41		($	24	)	$	24		($	7	)
Less: Net income (loss) attributable to NCI					(12	)		34			(46	)		9			(21	)
Nonoperating income (expense)(1)				$	29		$	7		$	22		$	15		$	14
	Estimated economic investments at March 31, 2014(2)			Three Months Ended March 31,									Three Months Ended December 31, 2013
				2014			2013			$ Change						$ Change
Net gain (loss) on investments(1)
Private equity		20-25	%	$	44		$	19		$	25		$	17		$	27
Real estate		5-10	%		2			3			(1	)		7			(5	)
Distressed credit/mortgage funds/ opportunistic funds		10-15	%		10			19			(9	)		12			(2	)
Hedge funds/funds of hedge funds		20-25	%		11			3			8			20			(9	)
Other investments(3)		35-40	%		2			7			(5	)		5			(3	)
Subtotal					69			51			18			61			8
Investments related to deferred compensation plans					3			4			(1	)		2			1
Total net gain (loss) on investments(1)					72			55			17			63			9
Interest and dividend income					10			6			4			4			6
Interest expense					(53	)		(54	)		1			(52	)		(1	)
Net interest expense					(43	)		(48	)		5			(48	)		5
Total nonoperating income (expense)(1)					29			7			22			15			14
Compensation expense related to (appreciation) depreciation on deferred compensation plans					(3	)		(4	)		1			(2	)		(1	)
Nonoperating income (expense), as adjusted(1)				$	26		$	3		$	23		$	13		$	13

⁽¹⁾ Net of net income (loss) attributable to noncontrolling interests (“NCI”).

⁽²⁾ Percentages represent estimated percentages of BlackRock’s corporate economic investment portfolio at March 31, 2014. Economic investment amounts at December 31, 2013 for private equity, real estate, distressed credit/mortgage funds/opportunistic funds, hedge funds/funds of hedge funds and other investments were $328 million, $125 million, $148 million, $348 million and $634 million, respectively. See the 2013 Form 10-K for more information.

⁽³⁾ Amounts include net gains (losses) related to equity and fixed income investments, and BlackRock’s seed capital hedging program.

Highlights

• Net gains on investments for the current quarter were positively impacted by the monetization of a non-strategic, opportunistic private equity investment.

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ECONOMIC TANGIBLE ASSETS

(Dollar amounts in billions), (unaudited)

The Company presents economic tangible assets as additional information to enable investors to eliminate gross presentation of certain assets that have equal and offsetting liabilities or noncontrolling interests that ultimately do not have an impact on stockholders’ equity (excluding appropriated retained earnings related to consolidated collateralized loan obligations) or cash flows. In addition, goodwill and intangible assets are excluded from economic tangible assets.

Economic tangible assets include cash, receivables, seed and co-investments, regulatory investments and other assets.

	March 31, 2014 (Est.)			December 31, 2013
Total balance sheet assets	$	216		$	220
Separate account assets and separate account collateral held under securities lending agreements		(173	)		(177	)
Consolidated VIEs/sponsored investment funds		(3	)		(3	)
Goodwill and intangible assets, net		(30	)		(30	)
Economic tangible assets	$	10		$	10

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RECONCILIATION OF U.S. GAAP OPERATING INCOME AND OPERATING MARGIN TO OPERATING INCOME AND OPERATING MARGIN, AS ADJUSTED

(Dollar amounts in millions), (unaudited)

	Three Months Ended
	March 31,						December 31, 2013
	2014			2013
Operating income, GAAP basis	$	1,051		$	909		$	1,133
Non-GAAP expense adjustments:
PNC LTIP funding obligation		8			8			8
Compensation expense related to appreciation (depreciation) on deferred compensation plans		3			4			2
Operating income, as adjusted		1,062			921			1,143
Closed-end fund launch costs		—			16			—
Closed-end fund launch commissions		—			2			—
Operating income used for operating margin measurement	$	1,062		$	939		$	1,143
Revenue, GAAP basis	$	2,670		$	2,449		$	2,777
Non-GAAP adjustments:
Distribution and servicing costs		(89	)		(91	)		(87	)
Amortization of deferred sales commissions		(15	)		(12	)		(14	)
Revenue used for operating margin measurement	$	2,566		$	2,346		$	2,676
Operating margin, GAAP basis		39.4	%		37.1	%		40.8	%
Operating margin, as adjusted		41.4	%		40.0	%		42.7	%

See note (1) to the Condensed Consolidated Statements of Income and Supplemental Information on page 13 for more information on as adjusted items and the reconciliation to GAAP.

RECONCILIATION OF U.S. GAAP NONOPERATING INCOME NET OF NCI TO NONOPERATING INCOME NET OF NCI, AS ADJUSTED

(Dollar amounts in millions), (unaudited)

	Three Months Ended
	March 31,						December 31, 2013
	2014			2013
Nonoperating income (expense), GAAP basis	$	17		$	41		$	24
Less: Net income (loss) attributable to NCI		(12	)		34			9
Nonoperating income (expense), net of NCI		29			7			15
Compensation expense related to (appreciation) depreciation on deferred compensation plans		(3	)		(4	)		(2	)
Nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted	$	26		$	3		$	13

See note (2) to the Condensed Consolidated Statements of Income and Supplemental Information on page 13 for more information on as adjusted items and the reconciliation to GAAP.

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RECONCILIATION OF U.S. GAAP NET INCOME ATTRIBUTABLE TO BLACKROCK TO NET INCOME ATTRIBUTABLE TO BLACKROCK, AS ADJUSTED

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

	Three Months Ended
	March 31,				December 31, 2013
	2014		2013
Net income attributable to BlackRock, Inc., GAAP basis	$	756	$	632	$	841
Non-GAAP adjustments, net of tax:(4)
PNC LTIP funding obligation		6		5		6
Amount related to the Charitable Contribution		—		—		9
Income tax changes		—		—		(5	)
Net income attributable to BlackRock, Inc., as adjusted	$	762	$	637	$	851
Diluted weighted-average common shares outstanding(5)		171.9		174.6		173.0
Diluted earnings per common share, GAAP basis(5)	$	4.40	$	3.62	$	4.86
Diluted earnings per common share, as adjusted(5)	$	4.43	$	3.65	$	4.92

See notes (3) through (5) to the Condensed Consolidated Statements of Income and Supplemental Information on page 14 for more information on as adjusted items and the reconciliation to GAAP.

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

BlackRock reports its financial results in accordance with accounting principles generally accepted in the United States (“GAAP”); however, management believes evaluating the Company’s ongoing operating results may be enhanced if investors have additional non-GAAP basis financial measures. Management reviews non-GAAP financial measures to assess ongoing operations and, for the reasons described below, considers them to be effective indicators, for both management and investors, of BlackRock’s financial performance over time. 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.

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

(1) Operating income, as adjusted, and operating margin, as adjusted:

Operating income, as adjusted, equals operating income, GAAP basis, excluding certain items management deems nonrecurring, recurring infrequently or transactions that ultimately will not impact BlackRock’s book value. 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.

• Operating income, as adjusted, includes non-GAAP expense adjustments. The portion of compensation expense associated with certain long-term incentive plans (“LTIP”) funded, or to be funded, through share distributions to participants of BlackRock stock held by The PNC Financial Services Group, Inc. (“PNC”) has been excluded because it ultimately does not impact BlackRock’s book value. Compensation expense associated with appreciation (depreciation) on investments related to certain BlackRock deferred compensation plans has been excluded as returns on investments set aside for these plans, which substantially offset this expense, are reported in nonoperating income (expense).

Management believes operating income exclusive of these items is a useful measure in evaluating BlackRock’s operating performance and helps enhance the comparability of this information for the reporting periods presented.

• Operating margin, as adjusted, allows BlackRock to compare performance from period to period by adjusting for items that may not recur, recur infrequently or may have an economic offset in nonoperating income (expense). BlackRock also uses operating margin, as adjusted, to monitor corporate performance and efficiency and as a benchmark to compare its performance with other companies. Management uses both GAAP and non-GAAP financial measures in evaluating BlackRock’s financial performance. The non-GAAP measure by itself may pose limitations because it does not include all of BlackRock’s revenues and expenses.

Operating income used for measuring operating margin, as adjusted, is equal to operating income, as adjusted, excluding the impact of closed-end fund launch costs and related commissions. Management believes the exclusion of such costs and related commissions is useful because these costs can fluctuate considerably and revenues associated with the expenditure of these costs will not fully impact BlackRock’s results until future periods.

Revenue used for operating margin, as adjusted, excludes distribution and servicing costs paid to related parties and other third parties. Management believes the exclusion of such costs is useful because it creates consistency in the treatment for certain contracts for similar services, which due to the terms of the contracts, are accounted for under GAAP on a net basis within investment advisory, administration fees and securities lending revenue. Amortization of deferred sales commissions is excluded from revenue used for operating margin measurement, as adjusted, because such costs, over time, substantially offset distribution fee revenue the Company earns. For each of these items, BlackRock excludes from revenue used for operating margin, as adjusted, the costs related to each of these items as a proxy for such offsetting revenues.

(2) Nonoperating income (expense), less net income (loss) attributable to noncontrolling interests, as adjusted: The compensation expense offset is recorded in operating income. This compensation expense has been included in nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted, to offset returns on investments set aside for these plans, which are reported in nonoperating income (expense), GAAP basis.

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Management believes nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted, provides comparability of information among reporting periods and is an effective measure for reviewing BlackRock’s nonoperating contribution to results. As compensation expense associated with (appreciation) depreciation on investments related to certain deferred compensation plans, which is included in operating income, substantially offsets the gain (loss) on the investments set aside for these plans, management believes 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 significant nonrecurring items, charges that ultimately will not impact BlackRock’s book value or certain tax items that do not impact cash flow.

See note (1) Operating income, as adjusted, and operating margin, as adjusted, for information on the PNC LTIP funding obligation.

The fourth quarter of 2013 reflected an amount recognized in connection with the Charitable Contribution. For more information on the Charitable Contribution, see the Annual Report on Form 10-K for the year ended December 31, 2013.

(4) For each period presented, the non-GAAP adjustments related to the PNC LTIP funding obligation were tax effected at the respective blended rates applicable to the adjustments.

(5) Nonvoting participating preferred stock is considered to be a common stock equivalent for purposes of determining basic and diluted earnings per share calculations.

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.

In addition to risk factors previously disclosed in BlackRock’s Securities and Exchange Commission (“SEC”) reports and those identified elsewhere in this earnings release, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: (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 assets under management; (3) the relative and absolute investment performance of BlackRock’s investment products; (4) the impact of increased competition; (5) the impact of future acquisitions or divestitures; (6) the unfavorable resolution of legal proceedings; (7) the extent and timing of any share repurchases; (8) the impact, extent and timing of technological changes and the adequacy of intellectual property, information and cyber security protection; (9) the impact of legislative and regulatory actions and reforms, including the Dodd-Frank Wall Street Reform and Consumer Protection Act, and regulatory, supervisory or enforcement actions of government agencies relating to BlackRock or PNC; (10) terrorist activities, international hostilities and natural disasters, which may adversely affect the general economy, domestic and local financial and capital markets, specific industries or BlackRock; (11) the ability to attract and retain highly talented professionals; (12) fluctuations in the carrying value of BlackRock’s economic investments; (13) the impact of changes to tax legislation, including income, payroll and transaction taxes, and taxation on products or transactions, which could affect the value proposition to clients and, generally, the tax position of the Company; (14) BlackRock’s success in maintaining the distribution of its products; (15) 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 (16) the impact of problems at other financial institutions or the failure or negative performance of products at other financial institutions.

-14-

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 atwww.sec.gov and on BlackRock’s website atwww.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.

Performance Notes

Past performance is not indicative of future results. Except as specified, the performance information shown is as of March 31, 2014 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 U.S. 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 28, 2014. The performance data does not include accounts terminated prior to March 31, 2014 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 U.S. retail, institutional and high net worth separate accounts as well as EMEA institutional separate accounts, and net-of-fee for European domiciled retail funds. The performance tracking shown for institutional index accounts is based on gross-of-fee performance and includes all institutional accounts and alliSharesfunds globally using an index strategy. AUM information is based on AUM available as of March 31, 2014 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.

Source of performance information and peer medians is BlackRock, Inc. and is based in part on data from Lipper Inc. for U.S. funds and Morningstar, Inc. for non-U.S. funds.

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