Blackrock and U.S. Bancorp released their fourth quarter earnings reports before opening bell this morning. Blackrock came up short of earnings estimates at $4.75 per share, excluding items, although revenues were slightly ahead at $2.86 billion, a 2.8% year over year increase. In last year’s fourth quarter, the firm posted adjusted earnings of $4.82 per share. Analysts had been expecting earnings of $4.80 per share and $2.84 billion in revenue.
U.S. Bancorp posted earnings of 80 cents per share and $5.21 billion in revenue, compared to the analyst estimates of 79 cents per share in earnings and $5.12 billion in revenue. U.S. Bancorp said its fourth quarter earnings results includes a benefit from the sale of one of its deposit portfolios, which was partially offset by accruals from legal and compliance issues. Together, these items increased earnings per share by 1 cent.
Blackrock sees strong inflows
Blackrock’s net earnings were $5.11 per share, up from last year’s $4.77 per share. The firm recorded $54 billion in long-term net inflows the fourth quarter and $152 billion in long-term net inflows for the full year. The iShares segment saw $130 billion in net inflows during the year.
The Retail business saw $7 billion in long-term net inflows for the fourth quarter, while iShares racked up $60.2 billion for the quarter. The Institutional Active segment saw $4 billion in long-term net inflows with the main driver being $3 billion in multi-asset net inflows. The Institutional Index unit saw $13.8 billion in long-term net outflows, mainly due to net outflows of $12.3 billion in fixed income.
Blackrock’s assets under management climbed 5% to $300 billion during the fourth quarter, while advisory assets under management ended the quarter at $10.2 billion.
Shares of Blackrock were inactive in premarket trading at Thursday’s closing price of $310 per share, as of this writing.
U.S. Bancorp sees momentum
U.S. Bancorp saw a 4.2% increase in average total loans year over year and a 6.9% increase in average total deposits compared to the previous year. Net interest income grew 2.6% year over year, while credit and debit card revenue climbed 8.1% from 2014. The bank’s Basel III standardized common equity tier 1 ratio was 9.1%. Under the advanced approach, the ratio was 11.9% at the end of the quarter.
“As the operating environment continues to improve, we are optimistic about the momentum building in our core businesses, particularly within our Wealth Management and Security Services and Payment Services businesses,” said U.S. Bancorp Chairman, President and CEO Richard Davis in a statement. “We recently announced an exciting new agreement with Fidelity Investments. U.S. Bank will become the exclusive issuer of the Fidelity® Rewards Visa Signature® Card and the Fidelity Investments 529 College Rewards® Visa Signature® Card. This program reflects the strength of our Payment Services business and strategic significance of our diversified business model.”
Shares of U.S. Bancorp dipped in premarket trading, falling by as much as 1.95% to $39.13 per share.