BLACKROCK INC Stock Forecasts | BLK EPS & Price Predictions

EX-99.1 2 blk-ex991_6.htm EX-99.1 blk-ex991_6.htm

Exhibit 99.1

INVESTOR RELATIONS:

Caroline Rodda 212.810.3442

MEDIA RELATIONS:

Brian Beades 212.810.5596

BlackRock Reports Full Year 2022 Diluted EPS of $33.97, or $35.36 as adjusted

Fourth Quarter 2022 Diluted EPS of $8.29, or $8.93 as adjusted

New York, January 13, 2023 – BlackRock, Inc. (NYSE: BLK) today reported financial results for the three months and year ended December 31, 2022.

$146 billion of quarterly long-term net inflows, including $61 billion of active net inflows, with total net inflows of $114 billion reflecting net outflows from cash management

$393 billion of full year long-term net inflows, reflects 4% organic asset growth and positive organic base fee growth, led by record flows into bond ETFs, significant outsourcing mandates and growth in private markets

8% decrease in full year revenue primarily driven by the impact of significantly lower markets and dollar appreciation on average AUM and lower performance fees

Record full year net new sales of Aladdin and continued growth in technology services revenue despite the negative impact of foreign exchange movements

Restructuring charge of $91 million from initiative to modify the size and shape of the workforce to align more closely with strategic priorities, excluded from as adjusted results

14% decrease in full year operating income (13% as adjusted)

11% decrease in full year diluted EPS (13% as adjusted) also reflects a lower effective tax rate and lower nonoperating income in the current year

$4.9 billion returned to shareholders in 2022, including $1.9 billion of share repurchases

Laurence D. Fink, Chairman and CEO:

“BlackRock delivered over $300 billion of net inflows and positive organic base fee growth in 2022. These industry-leading results reflect the decisions by thousands of organizations and investors that continually place their trust in BlackRock. The consistency of our results – across all market environments – comes from our clients’ confidence in BlackRock’s performance, guidance, and fiduciary standards.

“BlackRock’s diversified investment and technology capabilities provide clients with more choice to address their unique risk preferences and priorities. In the United States alone, we generated $230 billion of long-term net inflows. Flows were positive across each of our three regions. iShares led the global ETF industry with $220 billion of net inflows, including record flows into bond ETFs. We continued to scale our private markets platform, raising $35 billion of capital, with particular strength in private credit and infrastructure. And we saw record net new sales of Aladdin, further underscoring its importance in periods of market volatility.

“We ended the year with strong momentum, generating $114 billion of fourth quarter net inflows, representing 3% annualized organic base fee growth, reflecting continued strength in ETFs and significant outsourcing mandates.

“Like our clients – pensions, insurers, governments, and individual savers – BlackRock’s focus remains on investing for the long term. The current environment offers incredible opportunities for long-term investors, and we enter 2023 well-positioned and confident in our ability to deliver for our clients, employees, and shareholders.”

FINANCIAL RESULTS

(in millions,	Q4			Q4			Full Year
except per share data)	2022			2021			2022			2021
AUM	$	8,594,485		$	10,010,143		$	8,594,485		$	10,010,143
% change		(14	)%					(14	)%
Average AUM	$	8,417,215		$	9,749,652		$	8,948,570		$	9,364,948
% change		(14	)%					(4	)%
Total net flows	$	113,725		$	211,736		$	306,570		$	539,654

GAAP basis:
Revenue	$	4,337		$	5,106		$	17,873		$	19,374
% change		(15	)%					(8	)%
Operating income	$	1,427		$	2,039		$	6,385		$	7,450
% change		(30	)%					(14	)%
Operating margin		32.9	%		39.9	%		35.7	%		38.5	%
Net income⁽¹⁾	$	1,259		$	1,643		$	5,178		$	5,901
% change		(23	)%					(12	)%
Diluted EPS	$	8.29		$	10.63		$	33.97		$	38.22
% change		(22	)%					(11	)%
Weighted-average diluted shares		151.8			154.6			152.4			154.4
% change		(2	)%					(1	)%

As Adjusted⁽²⁾:
Operating income	$	1,577		$	2,107		$	6,711		$	7,747
% change		(25	)%					(13	)%
Operating margin		41.2	%		46.6	%		42.8	%		46.8	%
Net income⁽¹⁾	$	1,356		$	1,650		$	5,391		$	6,254
% change		(18	)%					(14	)%
Diluted EPS	$	8.93		$	10.68		$	35.36		$	40.51
% change		(16	)%					(13	)%

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

⁽²⁾

See notes (1) and (2) to the condensed consolidated statements of income and supplemental information on pages 10 through 12 for more information on as adjusted items and the reconciliation to GAAP. Beginning in the first quarter of 2022, BlackRock updated the definitions of operating income, as adjusted, operating margin, as adjusted, and net income attributable to BlackRock, Inc., as adjusted, to include new adjustments. Such measures have been recast for 2021 to reflect the inclusion of such new adjustments.

NET FLOW HIGHLIGHTS

			Q4			Full Year
(in billions)			2022			2022
Long-term net flows:			$	146		$	393

By region:

	Americas		$	104		$	233
	EMEA			32			73
	APAC			10			87

By client type:

	Retail:		$	(15	)	$	(20	)
		US		(9	)		(9	)
		International		(6	)		(11	)

	ETFs:		$	90		$	220
		Core equity		12			64
		Strategic		53			146
		Precision		25			10

	Institutional:		$	71		$	192
		Active		76			169
		Index		(5	)		24

Cash management net flows			$	(32	)	$	(77	)

Advisory net flows			$	-		$	(9	)

Total net flows			$	114		$	307

BUSINESS RESULTS

											Q4 2022
						Q4 2022					Base fees ⁽¹⁾
						Base fees ⁽¹⁾		December 31, 2022			and securities
	Q4 2022			December 31, 2022		and securities		AUM			lending revenue
(in millions), (unaudited)	Net flows			AUM		lending revenue		% of Total			% of Total
RESULTS BY CLIENT TYPE
Retail	$	(14,826	)	$	843,475	$	1,021		10	%		30	%
ETFs		89,651			2,909,610		1,349		34	%		39	%
Institutional:
Active		76,030			1,641,591		601		19	%		18	%
Index		(5,172	)		2,528,615		201		29	%		6	%
Total institutional		70,858			4,170,206		802		48	%		24	%
Long-term		145,683			7,923,291		3,172		92	%		93	%
Cash management		(31,958	)		671,194		227		8	%		7	%
Total	$	113,725		$	8,594,485	$	3,399		100	%		100	%

RESULTS BY INVESTMENT STYLE
Active	$	61,376		$	2,317,560	$	1,576		27	%		46	%
Index and ETFs		84,307			5,605,731		1,596		65	%		47	%
Long-term		145,683			7,923,291		3,172		92	%		93	%
Cash management		(31,958	)		671,194		227		8	%		7	%
Total	$	113,725		$	8,594,485	$	3,399		100	%		100	%

RESULTS BY PRODUCT TYPE
Equity	$	29,718		$	4,435,354	$	1,658		51	%		49	%
Fixed income		115,515			2,536,823		830		30	%		24	%
Multi-asset		2,112			684,904		293		8	%		9	%
Alternatives:
Illiquid alternatives		4,408			117,751		194		1	%		6	%
Liquid alternatives		(1,854	)		80,654		150		1	%		4	%
Currency and commodities		(4,216	)		67,805		47		1	%		1	%
Total Alternatives		(1,662	)		266,210		391		3	%		11	%
Long-term		145,683			7,923,291		3,172		92	%		93	%
Cash management		(31,958	)		671,194		227		8	%		7	%
Total	$	113,725		$	8,594,485	$	3,399		100	%		100	%

⁽¹⁾	Base fees include investment advisory and administration fees.

INVESTMENT PERFORMANCE AT December 31, 2022⁽¹⁾

	One-year period	Three-year period	Five-year period
Fixed income:
Actively managed AUM above benchmark or peer median
Taxable	57%	83%	89%
Tax-exempt	31%	41%	44%
Index AUM within or above applicable tolerance	94%	90%	95%
Equity:
Actively managed AUM above benchmark or peer median
Fundamental	49%	62%	80%
Systematic	54%	76%	72%
Index AUM within or above applicable tolerance	97%	98%	98%

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

TELECONFERENCE, WEBCAST AND PRESENTATION INFORMATION

Chairman and Chief Executive Officer, Laurence D. Fink, President, Robert S. Kapito, and Chief Financial Officer, Gary S. Shedlin, will host a teleconference call for investors and analysts on Friday, January 13, 2023 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, (877) 502-9276, or from outside the United States, (313) 209-4906, shortly before 8:30 a.m. and reference the BlackRock Conference Call (ID Number 7681580). 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 11:30 a.m. (Eastern Time) on Friday, January 13, 2023. 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 | Twitter: @blackrock | LinkedIn: www.linkedin.com/company/blackrock.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION

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

											Three Months
	Three Months Ended										Ended
	December 31,										September 30,
	2022			2021			Change				2022			Change
Revenue
Investment advisory, administration fees and securities lending revenue:
Investment advisory and administration fees	$	3,260		$	3,832		$	(572	)		$	3,369		$	(109	)
Securities lending revenue		139			136			3				162			(23	)
Total investment advisory, administration fees and securities lending revenue		3,399			3,968			(569	)			3,531			(132	)
Investment advisory performance fees		228			329			(101	)			82			146
Technology services revenue		353			339			14				338			15
Distribution fees		314			411			(97	)			325			(11	)
Advisory and other revenue		43			59			(16	)			35			8
Total revenue		4,337			5,106			(769	)			4,311			26

Expense
Employee compensation and benefits		1,430			1,559			(129	)			1,339			91
Distribution and servicing costs		497			587			(90	)			536			(39	)
Direct fund expense		275			319			(44	)			318			(43	)
General and administration expense		580			564			16				554			26
Restructuring charge		91			-			91				-			91
Amortization of intangible assets		37			38			(1	)			38			(1	)
Total expense		2,910			3,067			(157	)			2,785			125

Operating income		1,427			2,039			(612	)			1,526			(99	)

Nonoperating income (expense)
Net gain (loss) on investments		207			75			132				174			33
Interest and dividend income		72			46			26				41			31
Interest expense		(54	)		(50	)		(4	)			(50	)		(4	)
Total nonoperating income (expense)		225			71			154				165			60

Income before income taxes		1,652			2,110			(458	)			1,691			(39	)
Income tax expense		345			478			(133	)			330			15
Net income		1,307			1,632			(325	)			1,361			(54	)
Less:
Net income (loss) attributable to noncontrolling interests		48			(11	)		59				(45	)		93
Net income attributable to BlackRock, Inc.	$	1,259		$	1,643		$	(384	)		$	1,406		$	(147	)

Weighted-average common shares outstanding
Basic		150,035,914			151,822,226			(1,786,312	)			150,644,985			(609,071	)
Diluted		151,839,446			154,564,198			(2,724,752	)			151,961,389			(121,943	)
Earnings per share attributable to BlackRock, Inc. common stockholders
Basic	$	8.39		$	10.82		$	(2.43	)		$	9.33		$	(0.94	)
Diluted	$	8.29		$	10.63		$	(2.34	)		$	9.25		$	(0.96	)
Cash dividends declared and paid per share	$	4.88		$	4.13		$	0.75			$	4.88		$	-

Supplemental information:

AUM (end of period)	$	8,594,485		$	10,010,143		$	(1,415,658	)		$	7,961,373		$	633,112
Shares outstanding (end of period)		149,756,492			151,684,491			(1,927,999	)			150,461,863			(705,371	)
GAAP:
Operating margin		32.9	%		39.9	%		(700	)	bps		35.4	%		(250	)	bps
Effective tax rate		21.5	%		22.6	%		(110	)	bps		19.0	%		250		bps
As adjusted:
Operating income (1)	$	1,577		$	2,107		$	(530	)		$	1,585		$	(8	)
Operating margin (1)		41.2	%		46.6	%		(540	)	bps		42.0	%		(80	)	bps
Nonoperating income (expense), less net income (loss) attributable to noncontrolling interests	$	177		$	82		$	95			$	210		$	(33	)
Net income attributable to BlackRock, Inc. (2)	$	1,356		$	1,650		$	(294	)		$	1,451		$	(95	)
Diluted earnings attributable to BlackRock, Inc. common stockholders per share (2)	$	8.93		$	10.68		$	(1.75	)		$	9.55		$	(0.62	)
Effective tax rate		22.7	%		24.6	%		(190	)	bps		19.2	%		350		bps

See pages 10 through 12 for the reconciliation to GAAP and notes (1) and (2) to the condensed consolidated statements of income and supplemental information for more information on as adjusted items. Beginning in the first quarter of 2022, BlackRock updated the definitions of operating income, as adjusted, operating margin, as adjusted, and net income attributable to BlackRock, Inc., as adjusted, to include new adjustments. Such measures have been recast for 2021 to reflect the inclusion of such new adjustments.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION

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


	Year Ended
	December 31,
	2022			2021			Change
Revenue
Investment advisory, administration fees and securities lending revenue:
Investment advisory and administration fees	$	13,852		$	14,705		$	(853	)
Securities lending revenue		599			555			44
Total investment advisory, administration fees and securities lending revenue		14,451			15,260			(809	)
Investment advisory performance fees		514			1,143			(629	)
Technology services revenue		1,364			1,281			83
Distribution fees		1,381			1,521			(140	)
Advisory and other revenue		163			169			(6	)
Total revenue		17,873			19,374			(1,501	)

Expense
Employee compensation and benefits		5,681			6,043			(362	)
Distribution and servicing costs		2,179			2,200			(21	)
Direct fund expense		1,226			1,313			(87	)
General and administration expense		2,160			2,221			(61	)
Restructuring charge		91			-			91
Amortization of intangible assets		151			147			4
Total expense		11,488			11,924			(436	)

Operating income		6,385			7,450			(1,065	)

Nonoperating income (expense)
Net gain (loss) on investments		(35	)		841			(876	)
Interest and dividend income		152			87			65
Interest expense		(212	)		(205	)		(7	)
Total nonoperating income (expense)		(95	)		723			(818	)

Income before income taxes		6,290			8,173			(1,883	)
Income tax expense		1,296			1,968			(672	)
Net income		4,994			6,205			(1,211	)
Less:
Net income (loss) attributable to noncontrolling interests		(184	)		304			(488	)
Net income attributable to BlackRock, Inc.	$	5,178		$	5,901		$	(723	)

Weighted-average common shares outstanding
Basic		150,921,161			152,236,047			(1,314,886	)
Diluted		152,440,471			154,404,357			(1,963,886	)
Earnings per share attributable to BlackRock, Inc. common stockholders
Basic	$	34.31		$	38.76		$	(4.45	)
Diluted	$	33.97		$	38.22		$	(4.25	)
Cash dividends declared and paid per share	$	19.52		$	16.52		$	3.00

Supplemental information:

AUM (end of period)	$	8,594,485		$	10,010,143		$	(1,415,658	)
Shares outstanding (end of period)		149,756,492			151,684,491			(1,927,999	)
GAAP:
Operating margin		35.7	%		38.5	%		(280	)	bps
Effective tax rate		20.0	%		25.0	%		(500	)	bps
As adjusted:
Operating income (1)	$	6,711		$	7,747		$	(1,036	)
Operating margin (1)		42.8	%		46.8	%		(400	)	bps
Nonoperating income (expense), less net income (loss) attributable to noncontrolling interests	$	89		$	419		$	(330	)
Net income attributable to BlackRock, Inc. (2)	$	5,391		$	6,254		$	(863	)
Diluted earnings attributable to BlackRock, Inc. common stockholders per share (2)	$	35.36		$	40.51		$	(5.15	)
Effective tax rate		20.7	%		23.4	%		(270	)	bps

ASSETS UNDER MANAGEMENT

(in millions), (unaudited)

Current Quarter Component Changes by Client Type and Product Type
			Net
	September 30,		inflows			Market					December 31,
	2022		(outflows)			change			FX impact⁽¹⁾		2022		Average AUM ⁽²⁾
Retail:
Equity	$	342,647	$	(5,023	)	$	26,565		$	6,423	$	370,612	$	365,372
Fixed income		294,977		(6,539	)		6,574			4,102		299,114		296,911
Multi-asset		120,814		(2,721	)		6,099			976		125,168		124,741
Alternatives		48,060		(543	)		469			595		48,581		48,345
Retail subtotal		806,498		(14,826	)		39,707			12,096		843,475		835,369
ETFs:
Equity		1,861,499		44,566			163,246			12,431		2,081,742		2,030,063
Fixed income		694,062		47,099			10,116			6,816		758,093		729,199
Multi-asset		7,273		1,198			373			31		8,875		8,044
Alternatives		58,576		(3,212	)		5,440			96		60,900		59,085
ETFs subtotal		2,621,410		89,651			179,175			19,374		2,909,610		2,826,391
Institutional:
Active:
Equity		150,409		3,962			9,901			4,462		168,734		164,737
Fixed income		685,194		65,171			16,031			8,559		774,955		731,422
Multi-asset		502,787		4,278			24,437			12,967		544,469		530,135
Alternatives		148,895		2,619			(655	)		2,574		153,433		150,652
Active subtotal		1,487,285		76,030			49,714			28,562		1,641,591		1,576,946
Index:
Equity		1,665,757		(13,787	)		122,320			39,976		1,814,266		1,787,364
Fixed income		676,030		9,784			(18,457	)		37,304		704,661		692,561
Multi-asset		6,571		(643	)		297			167		6,392		6,578
Alternatives		3,703		(526	)		67			52		3,296		3,561
Index subtotal		2,352,061		(5,172	)		104,227			77,499		2,528,615		2,490,064
Institutional subtotal		3,839,346		70,858			153,941			106,061		4,170,206		4,067,010
Long-term		7,267,254		145,683			372,823			137,531		7,923,291		7,728,770
Cash management		694,119		(31,958	)		1,360			7,673		671,194		688,445
Total	$	7,961,373	$	113,725		$	374,183		$	145,204	$	8,594,485	$	8,417,215
Current Quarter Component Changes by Investment Style and Product Type (Long-Term)
			Net
	September 30,		inflows			Market					December 31,
	2022		(outflows)			change			FX impact⁽¹⁾		2022		Average AUM ⁽²⁾
Active:
Equity	$	359,587	$	(694	)	$	26,195		$	7,748	$	392,836	$	385,846
Fixed income		960,932		58,437			22,258			11,456		1,053,083		1,007,871
Multi-asset		623,594		1,557			30,536			13,942		669,629		654,868
Alternatives		196,953		2,076			(186	)		3,169		202,012		198,997
Active subtotal		2,141,066		61,376			78,803			36,315		2,317,560		2,247,582
Index and ETFs:
ETFs:
Equity		1,861,499		44,566			163,246			12,431		2,081,742		2,030,063
Fixed income		694,062		47,099			10,116			6,816		758,093		729,199
Multi-asset		7,273		1,198			373			31		8,875		8,044
Alternatives		58,576		(3,212	)		5,440			96		60,900		59,085
ETFs subtotal		2,621,410		89,651			179,175			19,374		2,909,610		2,826,391
Non-ETF Index:
Equity		1,799,226		(14,154	)		132,591			43,113		1,960,776		1,931,627
Fixed income		695,269		9,979			(18,110	)		38,509		725,647		713,023
Multi-asset		6,578		(643	)		297			168		6,400		6,586
Alternatives		3,705		(526	)		67			52		3,298		3,561
Non-ETF Index subtotal		2,504,778		(5,344	)		114,845			81,842		2,696,121		2,654,797
Index and ETFs subtotal		5,126,188		84,307			294,020			101,216		5,605,731		5,481,188
Long-term	$	7,267,254	$	145,683		$	372,823		$	137,531	$	7,923,291	$	7,728,770
Current Quarter Component Changes by Product Type (Long-Term)
			Net
	September 30,		inflows			Market					December 31,
	2022		(outflows)			change			FX impact⁽¹⁾		2022		Average AUM ⁽²⁾
Equity	$	4,020,312	$	29,718		$	322,032		$	63,292	$	4,435,354	$	4,347,536
Fixed income		2,350,263		115,515			14,264			56,781		2,536,823		2,450,093
Multi-asset		637,445		2,112			31,206			14,141		684,904		669,498
Alternatives:
Illiquid alternatives		111,729		4,408			(626	)		2,240		117,751		114,880
Liquid alternatives		81,418		(1,854	)		275			815		80,654		80,432
Currency and commodities⁽³⁾		66,087		(4,216	)		5,672			262		67,805		66,331
Alternatives subtotal		259,234		(1,662	)		5,321			3,317		266,210		261,643
Long-term	$	7,267,254	$	145,683		$	372,823		$	137,531	$	7,923,291	$	7,728,770

⁽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 commodity ETFs.

ASSETS UNDER MANAGEMENT

(in millions), (unaudited)

Year-over-Year Component Changes by Client Type and Product Type
			Net
	December 31,		inflows			Market						December 31,
	2021		(outflows)			change			FX impact⁽¹⁾			2022		Average AUM ⁽²⁾
Retail:
Equity	$	471,937	$	(103	)	$	(90,767	)	$	(10,455	)	$	370,612	$	401,582
Fixed income		365,306		(20,299	)		(41,706	)		(4,187	)		299,114		323,500
Multi-asset		155,461		(3,143	)		(26,064	)		(1,086	)		125,168		136,690
Alternatives		47,349		4,022			(2,271	)		(519	)		48,581		48,937
Retail subtotal		1,040,053		(19,523	)		(160,808	)		(16,247	)		843,475		910,709
ETFs:
Equity		2,447,248		100,756			(449,140	)		(17,122	)		2,081,742		2,163,108
Fixed income		745,373		122,893			(103,957	)		(6,216	)		758,093		719,931
Multi-asset		9,119		1,333			(1,441	)		(136	)		8,875		8,231
Alternatives		65,614		(4,647	)		70			(137	)		60,900		66,599
ETFs subtotal		3,267,354		220,335			(554,468	)		(23,611	)		2,909,610		2,957,869
Institutional:
Active:
Equity		199,980		9,882			(34,912	)		(6,216	)		168,734		175,567
Fixed income		767,402		114,742			(95,291	)		(11,898	)		774,955		715,600
Multi-asset		642,951		33,950			(112,028	)		(20,404	)		544,469		571,448
Alternatives		146,384		10,252			(243	)		(2,960	)		153,433		150,357
Active subtotal		1,756,717		168,826			(242,474	)		(41,478	)		1,641,591		1,612,972
Index:
Equity		2,223,195		(5,432	)		(341,087	)		(62,410	)		1,814,266		1,937,695
Fixed income		943,960		32,444			(203,501	)		(68,242	)		704,661		792,941
Multi-asset		8,963		(918	)		(1,285	)		(368	)		6,392		7,550
Alternatives		5,534		(2,482	)		569			(325	)		3,296		4,696
Index subtotal		3,181,652		23,612			(545,304	)		(131,345	)		2,528,615		2,742,882
Institutional subtotal		4,938,369		192,438			(787,778	)		(172,823	)		4,170,206		4,355,854
Long-term		9,245,776		393,250			(1,503,054	)		(212,681	)		7,923,291		8,224,432
Cash management		755,057		(77,374	)		1,071			(7,560	)		671,194		719,284
Advisory		9,310		(9,306	)		(4	)		-			-		4,854
Total	$	10,010,143	$	306,570		$	(1,501,987	)	$	(220,241	)	$	8,594,485	$	8,948,570
Year-over-Year Component Changes by Investment Style and Product Type (Long-Term)
			Net
	December 31,		inflows			Market						December 31,
	2021		(outflows)			change			FX impact⁽¹⁾			2022		Average AUM ⁽²⁾
Active:
Equity	$	507,103	$	(2,672	)	$	(100,240	)	$	(11,355	)	$	392,836	$	426,141
Fixed income		1,107,085		92,721			(132,590	)		(14,133	)		1,053,083		1,016,918
Multi-asset		798,404		30,806			(138,092	)		(21,489	)		669,629		708,130
Alternatives		193,733		14,273			(2,516	)		(3,478	)		202,012		199,294
Active subtotal		2,606,325		135,128			(373,438	)		(50,455	)		2,317,560		2,350,483
Index and ETFs:
ETFs:
Equity		2,447,248		100,756			(449,140	)		(17,122	)		2,081,742		2,163,108
Fixed income		745,373		122,893			(103,957	)		(6,216	)		758,093		719,931
Multi-asset		9,119		1,333			(1,441	)		(136	)		8,875		8,231
Alternatives		65,614		(4,647	)		70			(137	)		60,900		66,599
ETFs subtotal		3,267,354		220,335			(554,468	)		(23,611	)		2,909,610		2,957,869
Non-ETF Index:
Equity		2,388,009		7,019			(366,526	)		(67,726	)		1,960,776		2,088,703
Fixed income		969,583		34,166			(207,908	)		(70,194	)		725,647		815,123
Multi-asset		8,971		(917	)		(1,285	)		(369	)		6,400		7,558
Alternatives		5,534		(2,481	)		571			(326	)		3,298		4,696
Non-ETF Index subtotal		3,372,097		37,787			(575,148	)		(138,615	)		2,696,121		2,916,080
Index and ETFs subtotal		6,639,451		258,122			(1,129,616	)		(162,226	)		5,605,731		5,873,949
Long-term	$	9,245,776	$	393,250		$	(1,503,054	)	$	(212,681	)	$	7,923,291	$	8,224,432
Year-over-Year Component Changes by Product Type (Long-Term)
			Net
	December 31,		inflows			Market						December 31,
	2021		(outflows)			change			FX impact⁽¹⁾			2022		Average AUM ⁽²⁾
Equity	$	5,342,360	$	105,103		$	(915,906	)	$	(96,203	)	$	4,435,354	$	4,677,952
Fixed income		2,822,041		249,780			(444,455	)		(90,543	)		2,536,823		2,551,972
Multi-asset		816,494		31,222			(140,818	)		(21,994	)		684,904		723,919
Alternatives:
Illiquid alternatives		102,579		16,052			1,112			(1,992	)		117,751		111,075
Liquid alternatives		87,348		(1,690	)		(3,710	)		(1,294	)		80,654		84,024
Currency and commodities⁽³⁾		74,954		(7,217	)		723			(655	)		67,805		75,490
Alternatives subtotal		264,881		7,145			(1,875	)		(3,941	)		266,210		270,589
Long-term	$	9,245,776	$	393,250		$	(1,503,054	)	$	(212,681	)	$	7,923,291	$	8,224,432

⁽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 thirteen months.

⁽³⁾	Amounts include commodity ETFs.

SUMMARY OF REVENUE

	Three Months							Three Months						Year
	Ended							Ended						Ended
	December 31,							September 30,						December 31,
(in millions), (unaudited)	2022		2021		Change			2022			Change			2022		2021		Change
Investment advisory, administration fees and securities lending revenue:
Equity:
Active	$	478	$	680	$	(202	)	$	503		$	(25	)	$	2,147	$	2,571	$	(424	)
ETFs		1,021		1,222		(201	)		1,063			(42	)		4,345		4,658		(313	)
Non-ETF Index		159		190		(31	)		179			(20	)		711		771		(60	)
Equity subtotal		1,658		2,092		(434	)		1,745			(87	)		7,203		8,000		(797	)
Fixed income:
Active		462		560		(98	)		478			(16	)		1,977		2,191		(214	)
ETFs		283		308		(25	)		276			7			1,122		1,201		(79	)
Non-ETF Index		85		121		(36	)		91			(6	)		396		471		(75	)
Fixed income subtotal		830		989		(159	)		845			(15	)		3,495		3,863		(368	)
Multi-asset		293		373		(80	)		316			(23	)		1,299		1,414		(115	)
Alternatives:
Illiquid alternatives		194		167		27			184			10			741		668		73
Liquid alternatives		150		169		(19	)		155			(5	)		633		629		4
Currency and commodities		47		53		(6	)		51			(4	)		216		216		-
Alternatives subtotal		391		389		2			390			1			1,590		1,513		77
Long-term		3,172		3,843		(671	)		3,296			(124	)		13,587		14,790		(1,203	)
Cash management		227		125		102			235			(8	)		864		470		394
Total investment advisory, administration fees and securities lending revenue		3,399		3,968		(569	)		3,531			(132	)		14,451		15,260		(809	)
Investment advisory performance fees:
Equity		36		83		(47	)		(2	)		38			49		153		(104	)
Fixed income		6		17		(11	)		(3	)		9			25		48		(23	)
Multi-asset		11		15		(4	)		2			9			25		32		(7	)
Alternatives:
Illiquid alternatives		115		61		54			79			36			296		208		88
Liquid alternatives		60		153		(93	)		6			54			119		702		(583	)
Alternatives subtotal		175		214		(39	)		85			90			415		910		(495	)
Total performance fees		228		329		(101	)		82			146			514		1,143		(629	)
Technology services revenue		353		339		14			338			15			1,364		1,281		83
Distribution fees:
Retrocessions		237		302		(65	)		241			(4	)		1,026		1,098		(72	)
12b-1 fees (US mutual fund distribution fees)		69		95		(26	)		75			(6	)		312		358		(46	)
Other		8		14		(6	)		9			(1	)		43		65		(22	)
Total distribution fees		314		411		(97	)		325			(11	)		1,381		1,521		(140	)
Advisory and other revenue:
Advisory		17		31		(14	)		8			9			56		68		(12	)
Other		26		28		(2	)		27			(1	)		107		101		6
Total advisory and other revenue		43		59		(16	)		35			8			163		169		(6	)
Total revenue	$	4,337	$	5,106	$	(769	)	$	4,311		$	26		$	17,873	$	19,374	$	(1,501	)

Highlights

•

Investment advisory, administration fees and securities lending revenue decreased $569 million from the fourth quarter of 2021, primarily driven by the negative impact of market beta and foreign exchange movements on average AUM, partially offset by the elimination of yield-related fee waivers on money market funds. Securities lending revenue of $139 million increased from $136 million in the fourth quarter of 2021.

Investment advisory, administration fees and securities lending revenue decreased $132 million from the third quarter of 2022, primarily driven by the negative impact of market beta and foreign exchange movements on average AUM. Securities lending revenue of $139 million decreased from $162 million in the third quarter of 2022, primarily reflecting lower spreads.

•	Performance fees decreased $101 million from the fourth quarter of 2021, reflecting lower revenue from liquid alternative and long-only products, partially offset by higher revenue from illiquid alternative products.

Performance fees increased $146 million from the third quarter of 2022, due to higher revenue from alternative and long-only products.

•

Technology services revenue increased $14 million from the fourth quarter of 2021 and $15 million from the third quarter of 2022, reflecting continued strong client demand for Aladdin, despite the negative impact of foreign exchange movements. Technology services annual contract value (“ACV”)⁽¹⁾increased 8% from the fourth quarter of 2021, and was similarly impacted by foreign exchange headwinds.

⁽¹⁾	See note (3) to the condensed consolidated statements of income and supplemental information on page 12 for more information on ACV.

SUMMARY OF OPERATING EXPENSE

	Three Months							Three Months					Year
	Ended							Ended					Ended
	December 31,							September 30,					December 31,
(in millions), (unaudited)	2022		2021		Change			2022		Change			2022		2021		Change
Operating expense
Employee compensation and benefits	$	1,430	$	1,559	$	(129	)	$	1,339	$	91		$	5,681	$	6,043	$	(362	)
Distribution and servicing costs:
Retrocessions		237		302		(65	)		241		(4	)		1,026		1,098		(72	)
12b-1 costs		68		93		(25	)		74		(6	)		306		350		(44	)
Other		192		192		-			221		(29	)		847		752		95
Total distribution and servicing costs		497		587		(90	)		536		(39	)		2,179		2,200		(21	)
Direct fund expense		275		319		(44	)		318		(43	)		1,226		1,313		(87	)
General and administration expense:
Marketing and promotional		100		96		4			95		5			331		238		93
Occupancy and office related		99		114		(15	)		99		-			403		364		39
Portfolio services		71		68		3			73		(2	)		280		263		17
Sub-advisory		17		27		(10	)		21		(4	)		80		99		(19	)
Technology		151		135		16			156		(5	)		600		508		92
Professional services		51		57		(6	)		47		4			180		179		1
Communications		12		11		1			11		1			44		44		-
Foreign exchange remeasurement		8		1		7			3		5			10		4		6
Contingent consideration fair value adjustments		1		1		-			1		-			3		34		(31	)
Product launch costs		6		-		6			-		6			6		274		(268	)
Other general and administration		64		54		10			48		16			223		214		9
Total general and administration expense		580		564		16			554		26			2,160		2,221		(61	)
Restructuring charge		91		-		91			-		91			91		-		91
Amortization of intangible assets		37		38		(1	)		38		(1	)		151		147		4
Total operating expense	$	2,910	$	3,067	$	(157	)	$	2,785	$	125		$	11,488	$	11,924	$	(436	)

Highlights

•	Employee compensation and benefits expense decreased $129 million from the fourth quarter of 2021, primarily resulting from lower incentive compensation, driven by lower operating income, and the lower mark-to-market impact of certain deferred compensation programs.

Employee compensation and benefits expense increased $91 million from the third quarter of 2022, primarily reflecting higher incentive compensation driven by higher performance fees.

•	Direct fund expense decreased $44 million from the fourth quarter of 2021, primarily reflecting lower average index AUM.

Direct fund expense decreased $43 million from the third quarter of 2022, primarily reflecting lower average index AUM and certain rebates that seasonally occur in the fourth quarter.

•

General and administration expense increased $16 million from the fourth quarter of 2021, primarily driven by higher technology expense, the impact of foreign exchange remeasurement and higher product launch costs, partially offset by lower occupancy and office related expense, and lower sub-advisory expense.

General and administration expense increased $26 million from the third quarter of 2022.

•

A restructuring charge of $91 million, primarily comprised of severance and accelerated amortization expense of previously granted deferred compensation awards, was recorded in the fourth quarter of 2022 in connection with an initiative to modify the size and shape of the workforce to align more closely with strategic priorities. The restructuring charge has been excluded from our “as adjusted” financial results. See pages 10 through 12 for the reconciliation to GAAP and notes (1) and (2) to the condensed consolidated statements of income and supplemental information for more information on as adjusted items.

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

	Three Months									Three Months						Year
	Ended									Ended						Ended
	December 31,									September 30,						December 31,
(in millions), (unaudited)	2022			2021			Change			2022			Change			2022			2021			Change
Nonoperating income (expense), GAAP basis	$	225		$	71		$	154		$	165		$	60		$	(95	)	$	723		$	(818	)
Less: Net income (loss) attributable to noncontrolling interests ("NCI")		48			(11	)		59			(45	)		93			(184	)		304			(488	)
Nonoperating income (expense)⁽¹⁾	$	177		$	82		$	95		$	210		$	(33	)	$	89		$	419		$	(330	)

	Three Months									Three Months						Year
	Ended									Ended						Ended
	December 31,									September 30,						December 31,
(in millions), (unaudited)	2022			2021			Change			2022			Change			2022			2021			Change
Net gain (loss) on investments⁽¹⁾
Private equity	$	66		$	66		$	-		$	20		$	46		$	88		$	278		$	(190	)
Real assets		5			10			(5	)		9			(4	)		28			20			8
Other alternatives⁽²⁾		5			4			1			1			4			5			47			(42	)
Other investments⁽³⁾		44			(15	)		59			(58	)		102			(201	)		22			(223	)
Subtotal		120			65			55			(28	)		148			(80	)		367			(447	)
Other gains (losses)⁽⁴⁾		39			21			18			247			(208	)		229			170			59
Total net gain (loss) on investments⁽¹⁾		159			86			73			219			(60	)		149			537			(388	)
Interest and dividend income		72			46			26			41			31			152			87			65
Interest expense		(54	)		(50	)		(4	)		(50	)		(4	)		(212	)		(205	)		(7	)
Net interest income (expense)		18			(4	)		22			(9	)		27			(60	)		(118	)		58
Nonoperating income (expense)⁽¹⁾	$	177		$	82		$	95		$	210		$	(33	)	$	89		$	419		$	(330	)

⁽¹⁾

Net of net income (loss) attributable to NCI. Management believes nonoperating income (expense), as adjusted, is an effective measure for reviewing BlackRock’s nonoperating results, which ultimately impacts BlackRock’s book value. For more information on other as adjusted items see notes (1) and (2) to the condensed consolidated statements of income and supplemental information on pages 11 through 12.

⁽²⁾	Amounts primarily include net gains (losses) related to credit funds, direct hedge fund strategies and hedge fund solutions.

⁽³⁾	Amounts primarily include net gains (losses) related to unhedged investments.

⁽⁴⁾

The amounts for the year ended December 31, 2022 and 2021 primarily include nonoperating noncash pre-tax gains in connection with the Company’s strategic minority investment in iCapital Network, Inc. of approximately $267 million and $119 million, respectively. The amounts for the year ended December 31, 2021 also include nonoperating noncash pre-tax gains in connection with the Company’s strategic minority investment in Scalable Capital Limited of approximately $46 million. Additional amounts include noncash pre-tax gains (losses) related to the revaluation of certain other minority investments.

INCOME TAX EXPENSE

	Three Months									Three Months							Year
	Ended									Ended							Ended
	December 31,									September 30,							December 31,
(in millions), (unaudited)	2022			2021			Change			2022				Change			2022			2021			Change
Income tax expense	$	345		$	478		$	(133	)		$	330		$	15		$	1,296		$	1,968		$	(672	)
Effective tax rate		21.5	%		22.6	%		(110	) bps			19.0	%		250	bps		20.0	%		25.0	%		(500	) bps

Highlights

•	Fourth quarter 2022 income tax expense includes a $28 million net discrete tax benefit, of which $17 million is associated with the net noncash tax benefit related to the revaluation of certain deferred income tax liabilities.

•	Fourth quarter 2021 income tax expense includes a $45 million net noncash tax benefit related to the revaluation of certain deferred income tax liabilities.

•	Third quarter 2022 income tax expense included approximately $93 million of discrete tax benefits related to the resolution of certain outstanding tax matters.

RECONCILIATION OF GAAP OPERATING INCOME AND OPERATING MARGIN TO OPERATING INCOME AND OPERATING MARGIN, AS ADJUSTED
	Three Months Ended									Year Ended
	December 31,						September 30,			December 31,
(in millions), (unaudited)	2022			2021			2022			2022			2021
Operating income, GAAP basis	$	1,427		$	2,039		$	1,526		$	6,385		$	7,450
Non-GAAP expense adjustments:
Restructuring charge		91			-			-			91			-
Amortization of intangible assets		37			38			38			151			147
Acquisition-related compensation costs		6			12			5			24			88
Contingent consideration fair value adjustments		1			1			1			3			34
Lease cost - Hudson Yards		15			17			15			57			28
Operating income, as adjusted (1)		1,577			2,107			1,585			6,711			7,747
Product launch costs and commissions		6			-			-			6			284
Operating income used for operating margin measurement	$	1,583		$	2,107		$	1,585		$	6,717		$	8,031
Revenue, GAAP basis	$	4,337		$	5,106		$	4,311		$	17,873		$	19,374
Non-GAAP adjustments:
Distribution fees		(314	)		(411	)		(325	)		(1,381	)		(1,521	)
Investment advisory fees		(183	)		(176	)		(211	)		(798	)		(679	)
Revenue used for operating margin measurement	$	3,840		$	4,519		$	3,775		$	15,694		$	17,174
Operating margin, GAAP basis		32.9	%		39.9	%		35.4	%		35.7	%		38.5	%
Operating margin, as adjusted (1)		41.2	%		46.6	%		42.0	%		42.8	%		46.8	%

See note (1) to the condensed consolidated statements of income and supplemental information on page 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								Year Ended
	December 31,						September 30,		December 31,
(in millions, except per share data), (unaudited)	2022			2021			2022		2022			2021
Net income attributable to BlackRock, Inc., GAAP basis	$	1,259		$	1,643		$	1,406	$	5,178		$	5,901
Non-GAAP adjustments:
Restructuring charge, net of tax		69			-			-		69			-
Amortization of intangible assets, net of tax		27			29			29		114			112
Acquisition-related compensation costs, net of tax		5			9			4		19			67
Contingent consideration fair value adjustments, net of tax		1			1			1		3			26
Lease cost - Hudson Yards, net of tax		12			13			11		43			22
Income tax matters		(17	)		(45	)		-		(35	)		126
Net income attributable to BlackRock, Inc., as adjusted (2)	$	1,356		$	1,650		$	1,451	$	5,391		$	6,254
Diluted weighted-average common shares outstanding		151.8			154.6			152.0		152.4			154.4
Diluted earnings per common share, GAAP basis	$	8.29		$	10.63		$	9.25	$	33.97		$	38.22
Diluted earnings per common share, as adjusted (2)	$	8.93		$	10.68		$	9.55	$	35.36		$	40.51

See note (2) to the condensed consolidated statements of income and supplemental information on page 12 for more information on as adjusted items.

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 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 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 measures may not be comparable to other similarly titled measures of other companies.

Beginning in the first quarter of 2022, the Company updated its definition of operating income, as adjusted, operating margin, as adjusted, and net income attributable to BlackRock, Inc., as adjusted, to include adjustments related to amortization of intangible assets, other acquisition-related costs, including compensation costs for nonrecurring retention-related deferred compensation, and contingent consideration fair value adjustments incurred in connection with certain acquisitions. Such measures have been recast for 2021 to reflect the inclusion of such new adjustments. For further information, refer to the Current Report on Form 8-K furnished on April 13, 2022.

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: 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 non-GAAP expense adjustments. Beginning in the first quarter of 2022, the Company updated its definition of operating income, as adjusted, to include adjustments related to amortization of intangible assets, other acquisition-related costs, including 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. In the fourth quarter of 2022, the Company recorded a restructuring charge primarily comprised of severance and accelerated amortization expense of previously granted deferred compensation awards in connection with an initiative to modify the size and shape of the workforce to align more closely with strategic priorities. In addition, the Company recorded an expense related to the lease of office space for its new headquarters located at 50 Hudson Yards in New York (“Lease cost – Hudson Yards”) from August 2021, when it obtained access to the building to begin its tenant improvements. The Company will begin cash lease payments related to the new headquarters in May 2023. As a result, the Company is recognizing lease expense for both its current and new headquarters until its current headquarters lease expires in April 2023. Management believes excluding the impact of the restructuring charge and Lease cost – Hudson Yards when calculating operating income, as adjusted, is useful to assess the Company’s financial performance, ongoing operations, and enhances comparability among periods presented.

•

Operating income used for measuring operating margin, as adjusted, is equal to operating income, as adjusted, excluding the impact of product launch costs (e.g. 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 revenue associated with the expenditure of these costs will not fully impact BlackRock’s results until future periods.

•

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) 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) above regarding operating income, as adjusted, and operating margin, as adjusted, for information on the updated presentation of non-GAAP expense adjustments related to amortization of intangible assets, other acquisition-related costs, including compensation costs for nonrecurring retention-related deferred compensation, and contingent consideration fair value adjustments incurred in connection with certain acquisitions, restructuring charge, as well as previously reported Lease cost – Hudson Yards.

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

(3) 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 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.

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) a pandemic or health crisis, including the COVID-19 pandemic, and its continued impact on financial institutions, the global economy or capital markets, as well as BlackRock’s products, clients, vendors and employees, and BlackRock’s results of operations, the full extent of which may be unknown; (2) the introduction, withdrawal, success and timing of business initiatives and strategies; (3) 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 (“AUM”); (4) the relative and absolute investment performance of BlackRock’s investment products; (5) BlackRock’s ability to develop new products and services that address client preferences; (6) the impact of increased competition; (7) the impact of future acquisitions or divestitures; (8) BlackRock’s ability to integrate acquired businesses successfully; (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) attempts to circumvent BlackRock’s operational control environment or the potential for human error in connection with BlackRock’s operational systems; (13) the impact of legislative and regulatory actions and reforms and regulatory, supervisory or enforcement actions of government agencies relating to BlackRock; (14) changes in law and policy and uncertainty pending any such changes; (15) any failure to effectively manage conflicts of interest; (16) damage to BlackRock’s reputation; (17) geopolitical unrest, terrorist activities, civil or international hostilities, including the war between Russia and Ukraine, and natural disasters, which may adversely affect the general economy, domestic and local financial and capital markets, specific industries or BlackRock; (18) climate-related risks to BlackRock's business, products, operations and clients; (19) the ability to attract and retain highly talented professionals; (20) fluctuations in the carrying value of BlackRock’s economic investments; (21) 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; (22) BlackRock’s success in negotiating distribution arrangements and maintaining distribution channels for its products; (23) the failure by key third-party providers of BlackRock to fulfill their obligations to the Company; (24) operational, technological and regulatory risks associated with BlackRock’s major technology partnerships; (25) any disruption to the operations of third parties whose functions are integral to BlackRock’s exchange-traded funds (“ETF”) platform; (26) 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 (27) the impact of problems at other financial institutions or the failure or negative performance of products at 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.

PERFORMANCE NOTES

Past performance is not indicative of future results. Except as specified, the performance information shown is as of December 31, 2022 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 November 30, 2022. The performance data does not include accounts terminated prior to December 31, 2022 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 December 31, 2022 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.