BlackRock’s third-quarter profit rises as investors flock to its funds

(Reuters) -BlackRock, the world’s largest asset manager, on Friday reported a 13% rise in third-quarter profit as a rebound in markets attracted investors to its funds.

On an adjusted basis, BlackRock (NYSE:) earned $1.64 billion, or $10.91 per share, for the three months ended Sept. 30, from $1.45 billion, or $9.55 per share, a year earlier.

Analysts on average had expected a profit of $8.26 per share, according to LSEG data.

BlackRock ended the third quarter with $9.10 trillion in assets under management (AUM), up from $7.96 trillion a year earlier and lower than $9.4 trillion in the second quarter this year.

Hopes that the Federal Reserve could soon be done with its monetary tightening has helped calm investor worries about a potential recession.

But the central bank has also indicated it would keep its benchmark interest rate higher for longer, keeping a lid on the positive sentiment.

Revenue at BlackRock rose nearly 5% to $4.52 billion from a year earlier, driven by organic growth and the impact of market movements over the past 12 months on average AUM and higher technology services revenue, it said.

The New York-based company’s chief source of revenue is the management fees it earns as a percentage of the total AUM.