BlackRock hit with 84% profit drop

The New-York based investment firm blamed the drop, in large part, to incurring $215 million in losses from investments in hedge funds and real estate products.
JAN 21, 2009
By  Bloomberg
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.

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