BlackRock's second-quarter profit drops

Asset manager BlackRock reported a drop in profit for the second quarter amid challenging markets.

Profit fell by 4% to $789m or $4.73 per share on a diluted basis. On an adjusted basis, earnings came in at $4.78, in line with analysts’ expectations.

Assets under management were up 4% year-on-year to $4.9m but revenue declined to $2.80bn from $2.91bn.

The company said it saw $2bn of long-term net inflows in the second quarter of 0216 and $126bn over the last 12 months despite the impact of market headwinds and a slowdown in client activity.

Chairman and chief executive officer Laurence D. Fink said: “Our clients are facing unprecedented challenges as they attempt to navigate the current investment environment.

“Political and macroeconomic uncertainty, historically low yields and elevated market volatility are leading clients to pause, as evidenced by more than $55 trillion in bank deposits in the US, China and Japan alone.”

BlackRock shares were down 0.6% to $357.50 in pre-market trade.