BlackRock chairman and CEO, Larry Fink, accompanied by CFO, Gary Shedlin, and chief legal officer, Chris Meade, reported Q3 earnings on Wednesday, October 11, 2017.

Shedlin reported quarterly revenue of $3.2B increased fourteen-percent year-over-year and earnings per share of $5.92 increased fifteen-percent year-over-year. AUM reached about $5.98 trillion, up 17 percent from a year earlier.

During the earnings call, Fink shared that five clients are now live on Aladdin Risk for Wealth Management with the support of 75 firm employees. Aladdin is an operating system, which combines portfolio management, analysis and risk management, trade execution, and investment operations in a centralized platform for investment managers.

As a result of technology investments in Aladdin, technology and risk management revenue of $175MM increased 15 percent year-over-year, Shedlin shared. The wealth management version of Aladdin was first brainstormed at an internal employee innovation competition less than two years ago, according to BlackRock chairman and CEO Fink.

Fink is optimistic that, "...we're going to continue to have double-digit growth," as executive leadership identifies opportunities from existing Aladdin clients, specifically in fixed income, and expands Aladdin to include private equity options.

Fink shared another update in regards to Provider Aladdin, a private blockchain between BlackRock and their custodians. He says, "...we're in the testing phase right now...," in response to a Credit Suisse analyst's question. Blockchain technology will enable digital information to be distributed, but not copied and simultaneously stored in a collaborative database for both parties.

Global head of business operations & technology, Derek Stein, and chief risk officer, Ben Golub, did not participate in the call. 

Edited by: Cat Felle


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