(Reuters) – BlackRock Inc (BLK.N) on Friday reported a better-than-expected quarterly profit, as the world’s biggest asset manager pulled in more money to its exchange-traded funds (ETFs).
BlackRock’s profit was boosted by a $1.2 billion gain related to the recent enactment of the U.S. tax laws, and the company also raised its quarterly cash dividend by 15 percent.
A healthy equity market helped BlackRock’s index-tracking ETFs to grow at a record pace in the fourth quarter ended Dec. 31.
BlackRock said its iShares ETF business took in $54.8 billion in new money in the quarter, up from $49.3 billion a year earlier.
The New York-based company’s net income surged to $2.3 billion, or $14.07 per share, from $851 million, or $5.13. per share, a year earlier.
Excluding the benefit from the new tax law, BlackRock earned $6.24 per share. Analysts on an average expected the company to earn $6.04 per share, according to Thomson Reuters I/B/E/S.
The company ended the quarter with $6.29 trillion in assets under management, up from managed assets of $5.98 trillion at the end of the third quarter.
Net investment in fixed-income securities totaled $42.95 billion. BlackRock attracted total “long-term” net flows of $102.93 billion in the quarterly period.
Reporting by Diptendu Lahiri in Bengaluru; Editing by Savio D’Souza