BlackRock hit with 84% profit drop

BlackRock Inc. and U.S. Bancorp posted large profit drops today, while Northern Trust Corp. beat analyst expectations in a record fourth-quarter performance. BlackRock reported an 84% fourth-quarter profit drop today due in large part to incurring $215 million in losses from investments in hedge funds and real estate products. The New York-based asset manager posted fourth-quarter net income of $53 million, or 40 cents a share, compared with $322.4 million, or $2.43 a share, in the year-earlier period. Assets under management dipped to $1.31 trillion at the end of the fourth quarter, from $1.36 trillion a year earlier. U.S. Bancorp posted a 65% drop in fourth-quarter profits after taking a $253 million write-down in its securities. The Minneapolis-based bank reported net income of $330 million, or 15 cents a share, compared with $942 million, or 53 cents a share, in the year-earlier period. Northern Trust’s fourth-quarter net income was $342.3 million, or $1.47 a share, compared with $125 million, or 55 cents a share, in the year-earlier period. Analysts polled by New York-based Thomson Reuters were forecasting a profit of 92 cents per share for the Chicago-based bank.