8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of

The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 18, 2016

BLACKROCK, INC.

(Exact name of registrant as specified in its charter)

DELAWARE	001-33099	32-0174431
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

55 East 52nd Street, New York, New York	10055
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (212) 810-5300

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition

On October 18, 2016, BlackRock, Inc. (the “Company”) reported results of operations for the three and nine months ended September 30, 2016. A copy of the earnings release issued by the Company is attached as Exhibit 99.1. In addition, a copy of the Company’s Earnings Release Supplement for the quarter ended September 30, 2016 is being furnished as Exhibit 99.2 to this Form 8-K.

Item 9.01. Financial Statements and Exhibits

(d) Exhibits

99.1	Earnings release dated October 18, 2016 issued by the Company
99.2	Third Quarter 2016 Earnings – Earnings Release Supplement

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	BlackRock, Inc.
	(Registrant)
	By:	/s/ Gary Shedlin
Date: October 18, 2016		Gary S. Shedlin
		Senior Managing Director and
		Chief Financial Officer

EXHIBIT INDEX

99.1	Earnings release dated October 18, 2016 issued by the Company
99.2	Third Quarter 2016 Earnings – Earnings Release Supplement

EX-99.1

Exhibit 99.1

Tom Wojcik, Investor Relations	Brian Beades, Media Relations
212.810.8127	212.810.5596

BlackRock Reports Third Quarter 2016 Diluted EPS of $5.26, or $5.14 as adjusted

• $70 billion of total net inflows, including $55 billion in long-term net inflows, reflects positive flows across all product types, investment styles and regions

• 4% increase in base fees year-over-year driven by organic growth and market performance, offset by mix change favoring fixed income and cash

• 13% growth in Aladdin^® revenue year-over-year reflects ongoing demand for risk management technology

• Expansion in operating margin from prior year driven by continued expense discipline in the current quarter

• 5% increase in diluted EPS (3% as adjusted) year-over-year

• Consistent capital management with $275 million of quarterly share repurchases

FINANCIAL RESULTS

(in millions, except per share data)	Q3 2016			Q3 2015			Change			Q2 2016			Change			Nine Months Ended September 30,
																2016			2015			Change
AUM	$	5,117,421		$	4,505,721			14	%	$	4,890,121			5	%	$	5,117,421		$	4,505,721			14	%
GAAP basis:
Revenue	$	2,837		$	2,910			(3	)%	$	2,804			1	%	$	8,265		$	8,538			(3	)%
Operating income	$	1,209		$	1,222			(1	)%	$	1,173			3	%	$	3,345		$	3,527			(5	)%
Operating margin		42.6	%		42.0	%		60	bps		41.8	%		80	bps		40.5	%		41.3	%		(80	) bps
Net income(1)	$	875		$	843			4	%	$	789			11	%	$	2,321		$	2,484			(7	)%
Diluted EPS	$	5.26		$	5.00			5	%	$	4.73			11	%	$	13.92		$	14.68			(5	)%
Weighted average diluted shares		166.3			168.7			(1	)%		166.6			—	%		166.8			169.2			(1	)%
As Adjusted:
Operating income(2)	$	1,216		$	1,227			(1	)%	$	1,179			3	%	$	3,442		$	3,552			(3	)%
Operating margin(2)		44.8	%		43.9	%		90	bps		43.9	%		90	bps		43.5	%		43.4	%		10	bps
Net income(1) (2)	$	854		$	844			1	%	$	797			7	%	$	2,362		$	2,512			(6	)%
Diluted EPS(2)	$	5.14		$	5.00			3	%	$	4.78			8	%	$	14.16		$	14.85			(5	)%

⁽¹⁾  Net income represents net income attributable to BlackRock, Inc.

⁽²⁾ See notes (1) through (4) to the Condensed Consolidated Statements of Income and Supplemental Information on pages 13 through 15 for more information on as adjusted items and the reconciliation to GAAP.

New York, October 18, 2016 — BlackRock, Inc. (NYSE: BLK) today reported financial results for the three and nine months ended September 30, 2016.

“BlackRock’s business model was built to thrive in all market environments,” commented Laurence D. Fink, Chairman and CEO of BlackRock. “In the third quarter, even as investor preferences continued to migrate from equity to fixed income and cash, and away from active strategies, the diversity of our platform drove nearly $70 billion of total net inflows. Our $55 billion of long-term net inflows were positive across both active and index strategies, and positive across every asset class and region.

“Retail and institutional investors continued turning to iShares as an effective way to express market views and generate alpha. iShares once again captured the #1 market share of net new business in the United States, in Europe and globally, across both equity and fixed income. Our European fixed income ETFs reached $100 billion of AUM and fixed income remains an important growth area for iShares.

“With pensions and insurers facing continued challenges to fund future liabilities in a ‘lower-for-longer’ environment, we saw $8 billion of long-term active net inflows from institutional clients in the quarter, reflecting demand for BlackRock’s customized fixed income solutions and multi-asset strategies. Institutional demand for investment and risk management technology remains strong and drove 13% growth in our Aladdin revenue year-over-year.

“Regulatory change continues to have a material impact on our industry. In retail, the DoL fiduciary rule will increasingly influence the choices that financial intermediaries make for their clients. Anticipating that change, BlackRock is using our scale to provide distribution partners with the highest quality investment strategies at the best value, as well as portfolio construction and risk tools, to help them build better portfolios. In cash management, where more than $1 trillion dollars has shifted from prime to government funds as a result of money market reform, the breadth of our platform and our

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ability to both embrace and adapt ahead of change have enabled us to meet our clients’ evolving needs and increase market share, and we saw $15 billion of net inflows into cash management in the third quarter.

“I want to thank our employees for their ongoing commitment to improving our clients’ financial futures. We continue to evolve our business model and invest in our future to help clients achieve their investment goals and deliver long-term value for shareholders.”

LONG-TERM RESULTS BY CLIENT TYPE

(in millions), (unaudited)	Q3 2016 Net flows			September 30, 2016 AUM		Q3 2016 Base Fees(1)		September 30, 2016 AUM % of Total			Q3 2016 Base Fees(1) % of Total
Retail	$	(2,228	)	$	554,778	$	821		12	%		34	%
iShares		51,257			1,246,166		901		26	%		37	%
Institutional:
Active		7,531			1,039,653		465		22	%		19	%
Index		(1,376	)		1,877,501		241		40	%		10	%
Total institutional		6,155			2,917,154		706		62	%		29	%
Total long-term	$	55,184		$	4,718,098	$	2,428		100	%		100	%

LONG-TERM RESULTS BY PRODUCT TYPE

(in millions), (unaudited)	Q3 2016 Net flows		September 30, 2016 AUM		Q3 2016 Base Fees(1)		September 30, 2016 AUM % of Total			Q3 2016 Base Fees(1) % of Total
Equity	$	13,350	$	2,566,039	$	1,270		54	%		52	%
Fixed income		36,981		1,628,268		693		34	%		29	%
Multi-asset		3,038		402,261		285		9	%		12	%
Alternatives		1,815		121,530		180		3	%		7	%
Total long-term	$	55,184	$	4,718,098	$	2,428		100	%		100	%

LONG-TERM RESULTS BY INVESTMENT STYLE

(in millions), (unaudited)	Q3 2016 Net flows		September 30, 2016 AUM		Q3 2016 Base Fees(1)		September 30, 2016 AUM % of Total			Q3 2016 Base Fees(1) % of Total
Active	$	4,039	$	1,547,473	$	1,274		33	%		52	%
Index and iShares		51,145		3,170,625		1,154		67	%		48	%
Total long-term	$	55,184	$	4,718,098	$	2,428		100	%		100	%

⁽¹⁾ Base fees include investment advisory, administration fees and securities lending revenue.

Long-Term Business Highlights

Long-term net inflows were positive across all major regions, with net inflows of $38.7 billion, $13.4 billion and $3.1 billion from clients in the Americas, EMEA and Asia-Pacific, respectively. At September 30, 2016, BlackRock managed 63% of its long-term AUM for investors in the Americas and 37% for clients in EMEA and Asia-Pacific.

A discussion of the Company’s net flows by client type for the third quarter of 2016 is presented below.

• Retail long-term net outflows of $2.2 billion reflected net outflows of $1.9 billion and $0.3 billion from the United States and internationally, respectively. Fixed income saw net inflows of $5.8 billion, paced by flows into emerging market debt and high yield bond funds. Equity net outflows of $3.9 billion were primarily related to outflows from European and U.S. equities. Multi-asset net outflows of $3.5 billion were largely due to outflows from world allocation strategies.

• iShares^® long-term net inflows of $51.3 billion were led by equity net inflows of $25.5 billion, with strength in emerging market precision exposures and iShares Core ETFs. Fixed income net inflows of $22.7 billion were diversified across corporate, emerging markets and core bond funds. Commodities iShares generated $2.9 billion of net inflows.

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• Institutional active long-term net inflows of $7.5 billion were led by multi-asset net inflows of $6.5 billion, driven by ongoing demand for solutions offerings and the LifePath^® target-date series. Fixed income net inflows of $5.1 billion reflected strong flows from insurance clients in the quarter. Equity net outflows of $3.4 billion were primarily due to outflows from Scientific Active equities and European equities.

• Institutional index long-term net outflows of $1.4 billion reflected equity net outflows of $4.9 billion, partially offset by fixed income inflows of $3.4 billion, driven by inflows into liability-driven investment solutions.

Cash management AUM increased 4% to $389.0 billion, driven by $14.7 billion of net inflows, primarily into government funds ahead of money market reform.

Advisory AUM ended the third quarter at $10.3 billion.

INVESTMENT PERFORMANCE AT SEPTEMBER 30, 2016 ⁽¹⁾ 

	One-year period			Three-year period			Five-year period
Fixed Income:
Actively managed AUM above benchmark or peer median
Taxable		59	%		79	%		88	%
Tax-exempt		60	%		60	%		65	%
Index AUM within or above applicable tolerance		89	%		98	%		98	%
Equity:
Actively managed AUM above benchmark or peer median
Fundamental		50	%		66	%		53	%
Scientific		31	%		83	%		93	%
Index AUM within or above applicable tolerance		96	%		99	%		97	%

⁽¹⁾  Past performance is not indicative of future results. The performance information shown is based on preliminary available data. Please refer to page 16 for performance disclosure detail.

Teleconference, Webcast and Presentation Information

Chairman and Chief Executive Officer, Laurence D. Fink, and Chief Financial Officer, Gary S. Shedlin, will host a teleconference call for investors and analysts on Tuesday, October 18, 2016 at 8:30 a.m. (Eastern Time). Members of the public who are interested in participating in the teleconference should dial, from the United States, (800) 374-0176, or from outside the United States, (706) 679-8281, shortly before 8:30 a.m. and reference the BlackRock Conference Call (ID Number 92557521). A live, listen-only webcast will also be available via the investor relations section of www.blackrock.com.

Both the teleconference and webcast will be available for replay by 12:30 p.m. (Eastern Time) on Tuesday, October 18, 2016 and ending at midnight on Tuesday, November 1, 2016. To access the replay of the teleconference, callers from the United States should dial (855) 859-2056 and callers from outside the United States should dial (404) 537-3406 and enter the Conference ID Number 92557521. To access the webcast, please visit the investor relations section of www.blackrock.com.

About BlackRock

BlackRock is a global leader in investment management, risk management and advisory services for institutional and retail clients. At September 30, 2016, BlackRock’s AUM was $5.1 trillion. BlackRock helps clients around the world meet their goals and overcome challenges with a range of products that include separate accounts, mutual funds, iShares^® (exchange-traded funds), and other pooled investment vehicles. BlackRock also offers risk management, advisory and enterprise investment system services to a broad base of institutional investors through BlackRock Solutions^®. As of September 30, 2016, the firm had approximately 13,000 employees in 30 countries and a major presence in global markets, including North and South America, Europe, Asia, Australia and the Middle East and Africa. For additional information, please visit the Company’s website at www.blackrock.com | Twitter: @blackrock_news | Blog: www.blackrockblog.com | LinkedIn: www.linkedin.com/company/blackrock

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CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION

(in millions, except shares and per share data), (unaudited)

	Three Months Ended September 30,						Change			Three Months Ended June 30, 2016			Change
	2016			2015
Revenue
Investment advisory, administration fees and securities lending revenue	$	2,546		$	2,456		$	90		$	2,489		$	57
Investment advisory performance fees		58			208			(150	)		74			(16	)
BlackRock Solutions and advisory		174			167			7			172			2
Distribution fees		10			14			(4	)		11			(1	)
Other revenue		49			65			(16	)		58			(9	)
Total revenue		2,837			2,910			(73	)		2,804			33
Expense
Employee compensation and benefits		969			1,023			(54	)		977			(8	)
Distribution and servicing costs		114			102			12			109			5
Amortization of deferred sales commissions		8			12			(4	)		9			(1	)
Direct fund expense		200			198			2			195			5
General and administration		312			319			(7	)		316			(4	)
Amortization of intangible assets		25			34			(9	)		25			—
Total expense		1,628			1,688			(60	)		1,631			(3	)
Operating income		1,209			1,222			(13	)		1,173			36
Nonoperating income (expense)
Net gain (loss) on investments		31			(10	)		41			20			11
Interest and dividend income		22			12			10			6			16
Interest expense		(52	)		(50	)		(2	)		(51	)		(1	)
Total nonoperating income (expense)		1			(48	)		49			(25	)		26
Income before income taxes		1,210			1,174			36			1,148			62
Income tax expense		333			342			(9	)		353			(20	)
Net income		877			832			45			795			82
Less:
Net income (loss) attributable to noncontrolling interests		2			(11	)		13			6			(4	)
Net income attributable to BlackRock, Inc.	$	875		$	843		$	32		$	789		$	86
Weighted-average common shares outstanding
Basic		164,129,214			166,045,291			(1,916,077	)		164,758,612			(629,398	)
Diluted		166,256,598			168,665,303			(2,408,705	)		166,639,290			(382,692	)
Earnings per share attributable to BlackRock, Inc. common stockholders (4)
Basic	$	5.33		$	5.08		$	0.25		$	4.79		$	0.54
Diluted	$	5.26		$	5.00		$	0.26		$	4.73		$	0.53
Cash dividends declared and paid per share	$	2.29		$	2.18		$	0.11		$	2.29		$	—
Supplemental information:
AUM (end of period)	$	5,117,421		$	4,505,721		$	611,700		$	4,890,121		$	227,300
Shares outstanding (end of period)		163,858,070			166,057,085			(2,199,015	)		164,463,297			(605,227	)
GAAP:
Operating margin		42.6	%		42.0	%		60	bps		41.8	%		80	bps
Effective tax rate		27.6	%		28.8	%		(120	) bps		30.9	%		(330	) bps
As adjusted:
Operating income (1)	$	1,216		$	1,227		$	(11	)	$	1,179		$	37
Operating margin (1)		44.8	%		43.9	%		90	bps		43.9	%		90	bps
Nonoperating income (expense), less net income (loss) attributable to noncontrolling interests (2)	$	(1	)	$	(32	)	$	31		$	(31	)	$	30
Net income attributable to BlackRock, Inc. (3)	$	854		$	844		$	10		$	797		$	57
Diluted earnings attributable to BlackRock, Inc. common stockholders per share (3) (4)	$	5.14		$	5.00		$	0.14		$	4.78		$	0.36
Effective tax rate		29.7	%		29.3	%		40	bps		30.6	%		(90	) bps

See pages 13-15 for the reconciliation to GAAP and notes (1) through (4) for more information on as adjusted items.

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CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION

(in millions, except shares and per share data), (unaudited)

	Nine Months Ended September 30,						Change
	2016			2015
Revenue
Investment advisory, administration fees and securities lending revenue	$	7,394		$	7,380		$	14
Investment advisory performance fees		166			452			(286	)
BlackRock Solutions and advisory		517			475			42
Distribution fees		32			44			(12	)
Other revenue		156			187			(31	)
Total revenue		8,265			8,538			(273	)
Expense
Employee compensation and benefits		2,893			3,016			(123	)
Distribution and servicing costs		320			306			14
Amortization of deferred sales commissions		27			37			(10	)
Direct fund expense		583			578			5
General and administration		946			970			(24	)
Restructuring charge		76			—			76
Amortization of intangible assets		75			104			(29	)
Total expense		4,920			5,011			(91	)
Operating income		3,345			3,527			(182	)
Nonoperating income (expense)
Net gain (loss) on investments		49			59			(10	)
Interest and dividend income		33			21			12
Interest expense		(154	)		(153	)		(1	)
Total nonoperating income (expense)		(72	)		(73	)		1
Income before income taxes		3,273			3,454			(181	)
Income tax expense		954			971			(17	)
Net income		2,319			2,483			(164	)
Less:
Net income (loss) attributable to noncontrolling interests		(2	)		(1	)		(1	)
Net income attributable to BlackRock, Inc.	$	2,321		$	2,484		$	(163	)
Weighted-average common shares outstanding
Basic		164,756,355			166,579,805			(1,823,450	)
Diluted		166,760,912			169,157,188			(2,396,276	)
Earnings per share attributable to BlackRock, Inc. common stockholders (4)
Basic	$	14.09		$	14.91		$	(0.82	)
Diluted	$	13.92		$	14.68		$	(0.76	)
Cash dividends declared and paid per share	$	6.87		$	6.54		$	0.33
Supplemental information:
AUM (end of period)	$	5,117,421		$	4,505,721		$	611,700
Shares outstanding (end of period)		163,858,070			166,057,085			(2,199,015	)
GAAP:
Operating margin		40.5	%		41.3	%		(80	) bps
Effective tax rate		29.1	%		28.1	%		100	bps
As adjusted:
Operating income (1)	$	3,442		$	3,552		$	(110	)
Operating margin (1)		43.5	%		43.4	%		10	bps
Nonoperating income (expense), less net income (loss) attributable to noncontrolling interests (2)	$	(70	)	$	(71	)	$	1
Net income attributable to BlackRock, Inc. (3)	$	2,362		$	2,512		$	(150	)
Diluted earnings attributable to BlackRock, Inc. common stockholders per share (3) (4)	$	14.16		$	14.85		$	(0.69	)
Effective tax rate		30.0	%		27.8	%		220	bps

See pages 13-15 for the reconciliation to GAAP and notes (1) through (4) for more information on as adjusted items.

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ASSETS UNDER MANAGEMENT

(in millions), (unaudited)

Current Quarter Component Changes by Client Type and Product

	June 30, 2016		Net inflows (outflows)			Market Change			FX impact (1)			September 30, 2016		Average AUM(2)
Retail:
Equity	$	191,980	$	(3,889	)	$	8,550		$	(510	)	$	196,131	$	195,266
Fixed income		223,710		5,801			1,228			103			230,842		228,099
Multi-asset		111,456		(3,452	)		3,435			(70	)		111,369		112,263
Alternatives		17,281		(688	)		(190	)		33			16,436		16,753
Retail subtotal		544,427		(2,228	)		13,023			(444	)		554,778		552,381
iShares:
Equity		826,768		25,519			38,628			95			891,010		868,747
Fixed income		304,896		22,730			1,607			229			329,462		320,249
Multi-asset		2,328		124			56			(2	)		2,506		2,430
Alternatives		20,130		2,884			160			14			23,188		22,162
iShares subtotal		1,154,122		51,257			40,451			336			1,246,166		1,213,588
Institutional:
Active:
Equity		120,127		(3,357	)		7,455			(455	)		123,770		122,790
Fixed income		549,686		5,060			6,538			(485	)		560,799		557,357
Multi-asset		264,937		6,533			8,909			27			280,406		274,516
Alternatives		74,971		(705	)		565			(153	)		74,678		74,741
Active subtotal		1,009,721		7,531			23,467			(1,066	)		1,039,653		1,029,404
Index:
Equity		1,293,683		(4,923	)		68,226			(1,858	)		1,355,128		1,335,780
Fixed income		488,364		3,390			21,566			(6,155	)		507,165		499,187
Multi-asset		7,799		(167	)		322			26			7,980		7,982
Alternatives		6,808		324			169			(73	)		7,228		7,081
Index subtotal		1,796,654		(1,376	)		90,283			(8,060	)		1,877,501		1,850,030
Institutional subtotal		2,806,375		6,155			113,750			(9,126	)		2,917,154		2,879,434
Long-term		4,504,924		55,184			167,224			(9,234	)		4,718,098		4,645,403
Cash management		374,684		14,696			219			(617	)		388,982		383,424
Advisory(3)		10,513		(71	)		(14	)		(87	)		10,341		10,419
Total	$	4,890,121	$	69,809		$	167,429		$	(9,938	)	$	5,117,421	$	5,039,246
Current Quarter Component Changes by Product Type (Long-term)
	June 30, 2016		Net inflows (outflows)			Market Change			FX impact (1)			September 30, 2016		Average AUM(2)
Equity:
Active	$	276,348	$	(7,831	)	$	13,725		$	(516	)	$	281,726	$	281,136
iShares		826,768		25,519			38,628			95			891,010		868,747
Non-ETF index		1,329,442		(4,338	)		70,506			(2,307	)		1,393,303		1,372,700
Equity subtotal		2,432,558		13,350			122,859			(2,728	)		2,566,039		2,522,583
Fixed income:
Active		765,431		10,182			7,455			(210	)		782,858		777,109
iShares		304,896		22,730			1,607			229			329,462		320,249
Non-ETF index		496,329		4,069			21,877			(6,327	)		515,948		507,534
Fixed income subtotal		1,566,656		36,981			30,939			(6,308	)		1,628,268		1,604,892
Multi-asset		386,520		3,038			12,722			(19	)		402,261		397,191
Alternatives:
Core		89,912		(1,408	)		372			(145	)		88,731		89,149
Currency and commodities(4)		29,278		3,223			332			(34	)		32,799		31,588
Alternatives subtotal		119,190		1,815			704			(179	)		121,530		120,737
Long-term	$	4,504,924	$	55,184		$	167,224		$	(9,234	)	$	4,718,098	$	4,645,403
Current Quarter Component Changes by Investment Style (Long-term)
	June 30, 2016		Net inflows (outflows)			Market Change			FX impact (1)			September 30, 2016		Average AUM(2)
Active	$	1,510,424	$	4,039		$	33,900		$	(890	)	$	1,547,473	$	1,536,517
Index and iShares		2,994,500		51,145			133,324			(8,344	)		3,170,625		3,108,886
Long-term	$	4,504,924	$	55,184		$	167,224		$	(9,234	)	$	4,718,098	$	4,645,403

⁽¹⁾  Foreign exchange reflects the impact of translating non-U.S. dollar denominated AUM into U.S. dollars for reporting purposes.

⁽²⁾ Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing four months.

⁽³⁾  Advisory AUM represents long-term portfolio liquidation assignments.

⁽⁴⁾  Amounts include commodity iShares.

-6-

ASSETS UNDER MANAGEMENT

(in millions), (unaudited)

Year-to-Date Changes by Client Type and Product

	December 31, 2015		Net inflows (outflows)			Acquisition(1)		Market Change			FX impact (2)			September 30, 2016		Average AUM(3)
Retail:
Equity	$	193,755	$	(9,171	)	$	—	$	13,929		$	(2,382	)	$	196,131	$	192,072
Fixed income		212,653		10,239			—		7,929			21			230,842		220,956
Multi-asset		115,307		(7,668	)		—		4,216			(486	)		111,369		112,464
Alternatives		19,410		(2,279	)		—		(803	)		108			16,436		17,904
Retail subtotal		541,125		(8,879	)		—		25,271			(2,739	)		554,778		543,396
iShares:
Equity		823,156		24,264			—		40,747			2,843			891,010		828,932
Fixed income		254,190		60,238			—		14,126			908			329,462		296,192
Multi-asset		2,730		(340	)		—		110			6			2,506		2,341
Alternatives		12,485		7,016			—		3,642			45			23,188		18,100
iShares subtotal		1,092,561		91,178			—		58,625			3,802			1,246,166		1,145,565
Institutional:
Active:
Equity		121,442		(4,644	)		—		8,459			(1,487	)		123,770		119,626
Fixed income		514,428		8,967			—		34,779			2,625			560,799		542,375
Multi-asset		252,041		7,664			—		20,920			(219	)		280,406		263,307
Alternatives		74,941		(375	)		—		549			(437	)		74,678		74,835
Active subtotal		962,852		11,612			—		64,707			482			1,039,653		1,000,143
Index:
Equity		1,285,419		(16,990	)		—		83,247			3,452			1,355,128		1,291,634
Fixed income		441,097		15,204			—		71,566			(20,702	)		507,165		475,562
Multi-asset		6,258		(285	)		—		1,569			438			7,980		7,443
Alternatives		6,003		960			—		576			(311	)		7,228		6,518
Index subtotal		1,738,777		(1,111	)		—		156,958			(17,123	)		1,877,501		1,781,157
Institutional subtotal		2,701,629		10,501			—		221,665			(16,641	)		2,917,154		2,781,300
Long-term		4,335,315		92,800			—		305,561			(15,578	)		4,718,098		4,470,261
Cash management		299,884		11,556			80,635		206			(3,299	)		388,982		345,881
Advisory(4)		10,213		(216	)		—		(120	)		464			10,341		10,419
Total	$	4,645,412	$	104,140		$	80,635	$	305,647		$	(18,413	)	$	5,117,421	$	4,826,561
Year-to-Date Component Changes by Product Type (Long-term)
	December 31, 2015		Net Inflows (outflows)			Acquisition		Market Change			FX impact (2)			September 30, 2016		Average AUM(3)
Equity:
Active	$	281,319	$	(15,680	)	$	—	$	17,980		$	(1,893	)	$	281,726	$	276,494
iShares		823,156		24,264			—		40,747			2,843			891,010		828,932
Non-ETF index		1,319,297		(15,125	)		—		87,655			1,476			1,393,303		1,326,838
Equity subtotal		2,423,772		(6,541	)		—		146,382			2,426			2,566,039		2,432,264
Fixed income:
Active		719,653		18,110			—		41,727			3,368			782,858		755,462
iShares		254,190		60,238			—		14,126			908			329,462		296,192
Non-ETF index		448,525		16,300			—		72,547			(21,424	)		515,948		483,431
Fixed income subtotal		1,422,368		94,648			—		128,400			(17,148	)		1,628,268		1,535,085
Multi-asset		376,336		(629	)		—		26,815			(261	)		402,261		385,555
Alternatives:
Core		92,085		(2,382	)		—		(309	)		(663	)		88,731		90,424
Currency and commodities(5)		20,754		7,704			—		4,273			68			32,799		26,933
Alternatives subtotal		112,839		5,322			—		3,964			(595	)		121,530		117,357
Long-term	$	4,335,315	$	92,800		$	—	$	305,561		$	(15,578	)	$	4,718,098	$	4,470,261
Year-to-Date Component Changes by Investment Style (Long-term)
	December 31, 2015		Net Inflows (outflows)			Acquisition		Market Change			FX impact (2)			September 30, 2016		Average AUM(3)
Active	$	1,462,672	$	(228	)	$	—	$	84,589		$	440		$	1,547,473	$	1,500,466
Index and iShares		2,872,643		93,028			—		220,972			(16,018	)		3,170,625		2,969,795
Long-term	$	4,335,315	$	92,800		$	—	$	305,561		$	(15,578	)	$	4,718,098	$	4,470,261

⁽¹⁾  Amount represents AUM acquired in the BofA^® Global Capital Management transaction in April 2016.

⁽²⁾  Foreign exchange reflects the impact of converting non-U.S. dollar denominated AUM into U.S. dollars for reporting purposes.

⁽³⁾ Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing ten months.

⁽⁴⁾  Advisory AUM represents long-term portfolio liquidation assignments.

⁽⁵⁾  Amounts include commodity iShares.

-7-

ASSETS UNDER MANAGEMENT

(in millions), (unaudited)

Year-over-Year Component Changes by Client Type and Product

	September 30, 2015		Net inflows (outflows)			Acquisitions(1)		Market Change			FX impact(2)			September 30, 2016		Average AUM(3)
Retail:
Equity	$	184,265	$	(2,443	)	$	—	$	18,203		$	(3,894	)	$	196,131	$	192,360
Fixed income		210,605		14,175			—		6,755			(693	)		230,842		218,901
Multi-asset		120,486		(11,233	)		366		2,444			(694	)		111,369		114,089
Alternatives		19,852		(2,358	)		—		(1,025	)		(33	)		16,436		18,374
Retail subtotal		535,208		(1,859	)		366		26,377			(5,314	)		554,778		543,724
iShares:
Equity		748,458		71,824			—		71,109			(381	)		891,010		821,038
Fixed income		246,712		72,177			—		11,342			(769	)		329,462		286,110
Multi-asset		1,808		577			—		120			1			2,506		2,246
Alternatives		13,515		6,824			—		2,843			6			23,188		17,042
iShares subtotal		1,010,493		151,402			—		85,414			(1,143	)		1,246,166		1,126,436
Institutional:
Active:
Equity		116,718		(4,421	)		—		14,226			(2,753	)		123,770		120,066
Fixed income		522,509		5,581			—		32,670			39			560,799		538,467
Multi-asset		245,776		10,674			—		27,244			(3,288	)		280,406		261,256
Alternatives		74,351		160			560		362			(755	)		74,678		74,820
Active subtotal		959,354		11,994			560		74,502			(6,757	)		1,039,653		994,609
Index:
Equity		1,223,796		(18,036	)		—		152,702			(3,334	)		1,355,128		1,289,332
Fixed income		465,811		2,872			—		66,253			(27,771	)		507,165		473,484
Multi-asset		6,931		(869	)		—		1,557			361			7,980		7,282
Alternatives		6,201		1,161			—		253			(387	)		7,228		6,454
Index subtotal		1,702,739		(14,872	)		—		220,765			(31,131	)		1,877,501		1,776,552
Institutional subtotal		2,662,093		(2,878	)		560		295,267			(37,888	)		2,917,154		2,771,161
Long-term		4,207,794		146,665			926		407,058			(44,345	)		4,718,098		4,441,321
Cash management		285,692		27,323			80,635		29			(4,697	)		388,982		332,029
Advisory(4)		12,235		(1,963	)		—		(124	)		193			10,341		10,596
Total	$	4,505,721	$	172,025		$	81,561	$	406,963		$	(48,849	)	$	5,117,421	$	4,783,946
Year-over-Year Component Changes by Product Type (Long-term)
	September 30, 2015		Net inflows (outflows)			Acquisitions(1)		Market Change			FX impact(2)			September 30, 2016		Average AUM(3)
Equity:
Active	$	270,423	$	(10,814	)	$	—	$	26,313		$	(4,196	)	$	281,726	$	277,777
iShares		748,458		71,824			—		71,109			(381	)		891,010		821,038
Non-ETF index		1,254,356		(14,086	)		—		158,818			(5,785	)		1,393,303		1,323,981
Equity subtotal		2,273,237		46,924			—		256,240			(10,362	)		2,566,039		2,422,796
Fixed income:
Active		725,802		18,341			—		38,470			245			782,858		749,590
iShares		246,712		72,177			—		11,342			(769	)		329,462		286,110
Non-ETF index		473,123		4,287			—		67,208			(28,670	)		515,948		481,262
Fixed income subtotal		1,445,637		94,805			—		117,020			(29,194	)		1,628,268		1,516,962
Multi-asset		375,001		(851	)		366		31,365			(3,620	)		402,261		384,873
Alternatives:
Core		91,358		(1,424	)		560		(667	)		(1,096	)		88,731		90,760
Currency and commodities(5)		22,561		7,211			—		3,100			(73	)		32,799		25,930
Alternatives subtotal		113,919		5,787			560		2,433			(1,169	)		121,530		116,690
Long-term	$	4,207,794	$	146,665		$	926	$	407,058		$	(44,345	)	$	4,718,098	$	4,441,321
Year-over-Year Component Changes by Investment Style (Long-term)
	September 30, 2015		Net inflows (outflows)			Acquisitions(1)		Market Change			FX impact(2)			September 30, 2016		Average AUM(3)
Active	$	1,456,692	$	4,771		$	926	$	93,805		$	(8,721	)	$	1,547,473	$	1,495,906
Index and iShares		2,751,102		141,894			—		313,253			(35,624	)		3,170,625		2,945,415
Long-term	$	4,207,794	$	146,665		$	926	$	407,058		$	(44,345	)	$	4,718,098	$	4,441,321

⁽¹⁾  Amounts represent $560 million of AUM acquired in the Infraestructura Institucional acquisition in October 2015, $366 million of AUM acquired in the FutureAdvisor acquisition in October 2015 and $80.6 billion of AUM acquired in the BofA Global Capital Management transaction in April 2016. The FutureAdvisor acquisition amount does not include AUM that was held in iShares holdings.

⁽²⁾  Foreign exchange reflects the impact of translating non-U.S. dollar denominated AUM into U.S. dollars for reporting purposes.

⁽³⁾ Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing thirteen months.

⁽⁴⁾  Advisory AUM represents long-term portfolio liquidation assignments.

⁽⁵⁾  Amounts include commodity iShares.

-8-

SUMMARY OF REVENUE

	Three Months Ended September 30,				Change			Three Months Ended June 30, 2016		Change			Nine Months Ended September 30,				Change
(in millions), (unaudited)	2016		2015										2016		2015
Investment advisory, administration fees and securities lending revenue:
Equity:
Active	$	409	$	427	$	(18	)	$	406	$	3		$	1,201	$	1,296	$	(95	)
iShares		691		673		18			656		35			1,970		2,085		(115	)
Non-ETF Index		170		158		12			174		(4	)		508		511		(3	)
Equity subtotal		1,270		1,258		12			1,236		34			3,679		3,892		(213	)
Fixed income:
Active		427		402		25			414		13			1,237		1,162		75
iShares		188		139		49			172		16			512		407		105
Non-ETF Index		78		70		8			69		9			217		210		7
Fixed income subtotal		693		611		82			655		38			1,966		1,779		187
Multi-asset		285		322		(37	)		291		(6	)		860		942		(82	)
Alternatives:
Core		156		166		(10	)		168		(12	)		488		481		7
Currency and commodities		24		18		6			20		4			61		56		5
Alternatives subtotal		180		184		(4	)		188		(8	)		549		537		12
Long-term		2,428		2,375		53			2,370		58			7,054		7,150		(96	)
Cash management		118		81		37			119		(1	)		340		230		110
Total base fees		2,546		2,456		90			2,489		57			7,394		7,380		14
Investment advisory performance fees:
Equity		14		23		(9	)		42		(28	)		67		121		(54	)
Fixed income		2		3		(1	)		2		—			9		10		(1	)
Multi-asset		1		3		(2	)		2		(1	)		6		19		(13	)
Alternatives		41		179		(138	)		28		13			84		302		(218	)
Total performance fees		58		208		(150	)		74		(16	)		166		452		(286	)
BlackRock Solutions and advisory		174		167		7			172		2			517		475		42
Distribution fees		10		14		(4	)		11		(1	)		32		44		(12	)
Other revenue		49		65		(16	)		58		(9	)		156		187		(31	)
Total revenue	$	2,837	$	2,910	$	(73	)	$	2,804	$	33		$	8,265	$	8,538	$	(273	)

Highlights

• Investment advisory, administration fees and securities lending revenue increased $90 million from the third quarter of 2015 reflecting the impact of organic growth, higher markets on long-term average AUM and the effect of AUM acquired in the BofA Global Capital Management transaction, partially offset by mix shift from equities to fixed income and cash products. Securities lending revenue of $142 million in the current quarter increased $27 million from the third quarter of 2015, primarily reflecting higher average balances of securities on loan and higher spreads.

Investment advisory, administration fees and securities lending revenue increased $57 million from the second quarter of 2016, driven by higher average AUM and the effect of one additional day in the current quarter. Securities lending revenue decreased $9 million from the second quarter of 2016.

• Performance fees decreased $150 million from the third quarter of 2015, primarily reflecting strong performance from a single hedge fund with an annual measurement period that ended in the third quarter of 2015, and decreased $16 million from the second quarter of 2016.

• BlackRock Solutions^® and advisory revenue increased $7 million from the third quarter of 2015 and $2 million from the second quarter of 2016. BlackRock Solutions and advisory revenue included $152 million of Aladdin revenue in the current quarter compared with $135 million in the third quarter of 2015 and $146 million in the second quarter of 2016.

-9-

SUMMARY OF OPERATING EXPENSE

	Three Months Ended September 30,				Change			Three Months Ended June 30, 2016		Change			Nine Months Ended September 30,				Change
(in millions), (unaudited)	2016		2015										2016		2015
Operating Expense
Employee compensation and benefits	$	969	$	1,023	$	(54	)	$	977	$	(8	)	$	2,893	$	3,016	$	(123	)
Distribution and servicing costs		114		102		12			109		5			320		306		14
Amortization of deferred sales commissions		8		12		(4	)		9		(1	)		27		37		(10	)
Direct fund expense		200		198		2			195		5			583		578		5
General and administration		312		319		(7	)		316		(4	)		946		970		(24	)
Restructuring charge		—		—		—			—		—			76		—		76
Amortization of intangible assets		25		34		(9	)		25		—			75		104		(29	)
Total Operating Expense	$	1,628	$	1,688	$	(60	)	$	1,631	$	(3	)	$	4,920	$	5,011	$	(91	)

Highlights

• Employee compensation and benefits decreased $54 million from the third quarter of 2015, reflecting lower incentive compensation, driven primarily by lower performance fees, and decreased $8 million from the second quarter of 2016.

• General and administration expense decreased $7 million from the third quarter of 2015, reflecting expense discipline, and decreased $4 million from the second quarter of 2016.

INCOME TAX EXPENSE

	Three Months Ended September 30,				Change			Three Months Ended June 30, 2016		Change			Nine Months Ended September 30,				Change
(in millions), (unaudited)	2016		2015										2016		2015
Income tax expense	$	333	$	342	$	(9	)	$	353	$	(20	)	$	954	$	971	$	(17	)

Highlights

• The third quarter 2016 income tax expense included a $26 million net noncash tax benefit, primarily related to the revaluation of certain deferred income tax liabilities as a result of legislation enacted in the United Kingdom, and domestic state and local tax changes.

• The second quarter 2016 income tax expense included a $4 million net noncash expense, primarily related to the revaluation of certain deferred income tax liabilities as a result of domestic state and local tax changes.

• The third quarter 2015 income tax expense included a $6 million noncash tax benefit, primarily associated with the revaluation of certain deferred income tax liabilities as a result of domestic state and local tax changes.

-10-

SUMMARY OF NONOPERATING INCOME (EXPENSE)

			Three Months Ended September 30,									Three Months Ended June 30, 2016						Nine Months Ended September 30,
(in millions), (unaudited)			2016			2015			Change						Change			2016			2015			Change
Nonoperating income (expense), GAAP basis			$	1		$	(48	)	$	49		$	(25	)	$	26		$	(72	)	$	(73	)	$	1
Less: Net income (loss) attributable to NCI				2			(11	)		13			6			(4	)		(2	)		(1	)		(1	)
Nonoperating income (expense)(1)			$	(1	)	$	(37	)	$	36		$	(31	)	$	30		$	(70	)	$	(72	)	$	2
	Estimated economic investments at September 30, 2016(2)		Three Months Ended September 30,									Three Months Ended June 30, 2016						Nine Months Ended September 30,
(in millions), (unaudited)			2016			2015			Change						Change			2016			2015			Change
Net gain (loss) on investments(1)
Private equity		15-20%	$	2		$	25		$	(23	)	$	7		$	(5	)	$	11		$	35		$	(24	)
Real assets		5-10%		2			5			(3	)		1			1			5			9			(4	)
Other alternatives(3)		10-15%		9			(10	)		19			4			5			13			(6	)		19
Other investments(4)		60-65%		16			(19	)		35			2			14			22			(23	)		45
Subtotal				29			1			28			14			15			51			15			36
Other gains(5)				—			—			—			—			—			—			45			(45	)
Total net gain (loss) on investments(1)				29			1			28			14			15			51			60			(9	)
Interest and dividend income				22			12			10			6			16			33			21			12
Interest expense				(52	)		(50	)		(2	)		(51	)		(1	)		(154	)		(153	)		(1	)
Net interest expense				(30	)		(38	)		8			(45	)		15			(121	)		(132	)		11
Total nonoperating income (expense)(1)				(1	)		(37	)		36			(31	)		30			(70	)		(72	)		2
Compensation expense related to (appreciation) depreciation on deferred compensation plans				—			5			(5	)		—			—			—			1			(1	)
Nonoperating income (expense), as adjusted(1)			$	(1	)	$	(32	)	$	31		$	(31	)	$	30		$	(70	)	$	(71	)	$	1

⁽¹⁾ Net of net income (loss) attributable to noncontrolling interests (“NCI”).

⁽²⁾  Percentages represent estimated percentages of BlackRock’s corporate economic investment portfolio at September 30, 2016. Economic investment amounts at June 30, 2016 for private equity, real assets, other alternatives and other investments were $351 million, $106 million, $230 million and $826 million, respectively.

⁽³⁾  Amounts primarily include net gains (losses) related to direct hedge fund strategies and hedge fund solutions.

⁽⁴⁾ Amounts include net gains (losses) related to equity and fixed income investments, and BlackRock’s seed capital hedging program.

⁽⁵⁾ Amount for the nine months ended September 30, 2015 primarily includes a gain related to the acquisition of certain assets of BlackRock Kelso Capital Advisors LLC.

Highlights

• Net interest expense in the current quarter reflected higher dividend income compared with third quarter of 2015 and second quarter of 2016.

-11-

ECONOMIC TANGIBLE ASSETS

The Company presents economic tangible assets as additional information to enable investors to exclude certain assets that have equal and offsetting liabilities or noncontrolling interests that ultimately do not have an impact on stockholders’ equity or cash flows. In addition, goodwill and intangible assets are excluded from economic tangible assets.

Economic tangible assets include cash, receivables, seed and co-investments, regulatory investments and other assets.

(in billions), (unaudited)	September 30, 2016 (Est.)			December 31, 2015
Total balance sheet assets	$	227		$	225
Separate account assets and separate account collateral held under securities lending agreements		(184	)		(182	)
Consolidated sponsored investment funds		—			(1	)
Goodwill and intangible assets, net		(31	)		(30	)
Economic tangible assets	$	12		$	12

-12-

RECONCILIATION OF U.S. GAAP OPERATING INCOME AND OPERATING MARGIN TO OPERATING INCOME AND OPERATING MARGIN, AS ADJUSTED

	Three Months Ended									Nine Months Ended September 30,
	September 30,						June 30,
(in millions), (unaudited)	2016			2015			2016			2016			2015
Operating income, GAAP basis	$	1,209		$	1,222		$	1,173		$	3,345		$	3,527
Non-GAAP expense adjustments:
Restructuring charge		—			—			—			76			—
PNC LTIP funding obligation		7			10			6			21			26
Compensation expense related to appreciation (depreciation) on deferred compensation plans		—			(5	)		—			—			(1	)
Operating income, as adjusted		1,216			1,227			1,179			3,442			3,552
Product launch costs and commissions		—			—			—			—			5
Operating income used for operating margin measurement	$	1,216		$	1,227		$	1,179		$	3,442		$	3,557
Revenue, GAAP basis	$	2,837		$	2,910		$	2,804		$	8,265		$	8,538
Non-GAAP adjustments:
Distribution and servicing costs		(114	)		(102	)		(109	)		(320	)		(306	)
Amortization of deferred sales commissions		(8	)		(12	)		(9	)		(27	)		(37	)
Revenue used for operating margin measurement	$	2,715		$	2,796		$	2,686		$	7,918		$	8,195
Operating margin, GAAP basis		42.6	%		42.0	%		41.8	%		40.5	%		41.3	%
Operating margin, as adjusted		44.8	%		43.9	%		43.9	%		43.5	%		43.4	%

See note (1) to the Condensed Consolidated Statements of Income and Supplemental Information on page 14 for more information on as adjusted items and the reconciliation to GAAP.

RECONCILIATION OF U.S. GAAP NONOPERATING INCOME NET OF NCI TO NONOPERATING INCOME NET OF NCI, AS ADJUSTED

	Three Months Ended									Nine Months Ended September 30,
	September 30,						June 30,
(in millions), (unaudited)	2016			2015			2016			2016			2015
Nonoperating income (expense), GAAP basis	$	1		$	(48	)	$	(25	)	$	(72	)	$	(73	)
Less: Net income (loss) attributable to NCI		2			(11	)		6			(2	)		(1	)
Nonoperating income (expense), net of NCI		(1	)		(37	)		(31	)		(70	)		(72	)
Compensation expense related to (appreciation) depreciation on deferred compensation plans		—			5			—			—			1
Nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted	$	(1	)	$	(32	)	$	(31	)	$	(70	)	$	(71	)

See note (2) to the Condensed Consolidated Statements of Income and Supplemental Information on page 14 for more information on as adjusted items and the reconciliation to GAAP.

RECONCILIATION OF U.S. GAAP NET INCOME ATTRIBUTABLE TO BLACKROCK TO NET INCOME ATTRIBUTABLE TO BLACKROCK, AS ADJUSTED

	Three Months Ended								Nine Months Ended September 30,
	September 30,						June 30,
(in millions, except per share data), (unaudited)	2016			2015			2016		2016			2015
Net income attributable to BlackRock, Inc., GAAP basis	$	875		$	843		$	789	$	2,321		$	2,484
Non-GAAP adjustments:
Restructuring charge (including $23 tax benefit)		—			—			—		53			—
PNC LTIP funding obligation, net of tax		5			7			4		14			18
Income tax matters		(26	)		(6	)		4		(26	)		10
Net income attributable to BlackRock, Inc., as adjusted	$	854		$	844		$	797	$	2,362		$	2,512
Diluted weighted-average common shares outstanding(4)		166.3			168.7			166.6		166.8			169.2
Diluted earnings per common share, GAAP basis(4)	$	5.26		$	5.00		$	4.73	$	13.92		$	14.68
Diluted earnings per common share, as adjusted(4)	$	5.14		$	5.00		$	4.78	$	14.16		$	14.85

See notes (3) and (4) to the Condensed Consolidated Statements of Income and Supplemental Information on page 15 for more information on as adjusted items and the reconciliation to GAAP.

-13-

NOTES TO CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION (unaudited)

BlackRock reports its financial results in accordance with accounting principles generally accepted in the United States (“GAAP”); however, management believes evaluating the Company’s ongoing operating results may be enhanced if investors have additional non-GAAP financial measures. Management reviews non-GAAP financial measures to assess ongoing operations and, for the reasons described below, considers them to be effective indicators, for both management and investors, of BlackRock’s financial performance over time. Management also uses non-GAAP financial measures as a benchmark to compare its performance with other companies and to enhance the comparability of this information for the reporting periods presented. Non-GAAP measures may pose limitations because they do not include all of BlackRock’s revenue and expense. BlackRock’s management does not advocate that investors consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.

Management uses both GAAP and non-GAAP financial measures in evaluating BlackRock’s financial performance. Adjustments to GAAP financial measures (“non-GAAP adjustments”) include certain items management deems nonrecurring or that occur infrequently, transactions that ultimately will not impact BlackRock’s book value or certain tax items that do not impact cash flow.

Computations for all periods are derived from the condensed consolidated statements of income as follows:

(1) Operating income, as adjusted, and operating margin, as adjusted: Management believes operating income, as adjusted, and operating margin, as adjusted, are effective indicators of BlackRock’s financial performance over time and, therefore, provide useful disclosure to investors.

• Operating income, as adjusted, includes non-GAAP expense adjustments. A restructuring charge comprised of severance and accelerated amortization expense of previously granted deferred compensation awards has been excluded to provide more meaningful analysis of BlackRock’s ongoing operations and to ensure comparability among periods presented. The portion of compensation expense associated with certain long-term incentive plans (“LTIP”) funded, or to be funded, through share distributions to participants of BlackRock stock held by The PNC Financial Services Group, Inc. (“PNC”) has been excluded because it ultimately does not impact BlackRock’s book value. Compensation expense associated with appreciation (depreciation) on investments related to certain BlackRock deferred compensation plans has been excluded, as returns on investments set aside for these plans, which substantially offset this expense, are reported in nonoperating income (expense).

• Operating income used for measuring operating margin, as adjusted, is equal to operating income, as adjusted, excluding the impact of product launch costs (e.g. closed-end fund launch costs) and related commissions. Management believes the exclusion of such costs and related commissions is useful because these costs can fluctuate considerably and revenue associated with the expenditure of these costs will not fully impact BlackRock’s results until future periods.

Revenue used for operating margin, as adjusted, excludes distribution and servicing costs paid to related parties and other third parties. Management believes the exclusion of such costs is useful because it creates consistency in the treatment for certain contracts for similar services, which due to the terms of the contracts, are accounted for under GAAP on a net basis within investment advisory, administration fees and securities lending revenue. Amortization of deferred sales commissions is excluded from revenue used for operating margin measurement, as adjusted, because such costs, over time, substantially offset distribution fee revenue the Company earns. For each of these items, BlackRock excludes from revenue used for operating margin, as adjusted, the costs related to each of these items as a proxy for such offsetting revenue.

(2) Nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted: Nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted, equals nonoperating income (expense), GAAP basis, less net income (loss) attributable to NCI, adjusted for compensation expense associated with (appreciation) depreciation on investments related to certain BlackRock deferred compensation plans. The compensation expense offset is recorded in operating income. This compensation expense has been included in nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted, to offset returns on investments set aside for these plans, which are reported in nonoperating income (expense), GAAP basis.

Management believes nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted, provides comparability of information among reporting periods and is an effective measure for reviewing BlackRock’s nonoperating contribution to results.

-14-

(3) Net income attributable to BlackRock, Inc., as adjusted: Management believes net income attributable to BlackRock, Inc., as adjusted, and diluted earnings per common share, as adjusted, are useful measures of BlackRock’s profitability and financial performance. Net income attributable to BlackRock, Inc., as adjusted, equals net income attributable to BlackRock, Inc., GAAP basis, adjusted for significant nonrecurring items, charges that ultimately will not impact BlackRock’s book value or certain tax items that do not impact cash flow.

See aforementioned discussion regarding operating income, as adjusted, and operating margin, as adjusted, for information on the PNC LTIP funding obligation and the restructuring charge.

For each period presented, the non-GAAP adjustment related to the restructuring charge and PNC LTIP funding obligation was tax effected at the respective blended rates applicable to the adjustments. Amounts for income tax matters represent net noncash (benefits) expense primarily associated with the revaluation of certain deferred tax liabilities related to intangible assets and goodwill. Amounts have been excluded from the as adjusted results as these items will not have a cash flow impact and to ensure comparability among periods presented.

Per share amounts reflect net income attributable to BlackRock, as adjusted divided by diluted weighted average common shares outstanding.

(4) Nonvoting participating preferred stock is considered to be a common stock equivalent for purposes of determining basic and diluted earnings per share calculations.

-15-

Forward-looking Statements

This earnings release, and other statements that BlackRock may make, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to BlackRock’s future financial or business performance, strategies or expectations. Forward-looking statements are typically identified by words or phrases such as “trend,” “potential,” “opportunity,” “pipeline,” “believe,” “comfortable,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may” and similar expressions.

BlackRock cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made, and BlackRock assumes no duty to and does not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance.

In addition to risk factors previously disclosed in BlackRock’s Securities and Exchange Commission (“SEC”) reports and those identified elsewhere in this earnings release, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: (1) the introduction, withdrawal, success and timing of business initiatives and strategies; (2) changes and volatility in political, economic or industry conditions, the interest rate environment, foreign exchange rates or financial and capital markets, which could result in changes in demand for products or services or in the value of assets under management; (3) the relative and absolute investment performance of BlackRock’s investment products; (4) the impact of increased competition; (5) the impact of future acquisitions or divestitures; (6) the unfavorable resolution of legal proceedings; (7) the extent and timing of any share repurchases; (8) the impact, extent and timing of technological changes and the adequacy of intellectual property, information and cyber security protection; (9) the impact of legislative and regulatory actions and reforms, including the Dodd-Frank Wall Street Reform and Consumer Protection Act, and regulatory, supervisory or enforcement actions of government agencies relating to BlackRock or PNC; (10) terrorist activities, international hostilities and natural disasters, which may adversely affect the general economy, domestic and local financial and capital markets, specific industries or BlackRock; (11) the ability to attract and retain highly talented professionals; (12) fluctuations in the carrying value of BlackRock’s economic investments; (13) the impact of changes to tax legislation, including income, payroll and transaction taxes, and taxation on products or transactions, which could affect the value proposition to clients and, generally, the tax position of the Company; (14) BlackRock’s success in maintaining the distribution of its products; (15) the impact of BlackRock electing to provide support to its products from time to time and any potential liabilities related to securities lending or other indemnification obligations; and (16) the impact of problems at other financial institutions or the failure or negative performance of products at other financial institutions.

BlackRock’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and BlackRock’s subsequent filings with the SEC, accessible on the SEC’s website at www.sec.gov and on BlackRock’s website at www.blackrock.com, discuss these factors in more detail and identify additional factors that can affect forward-looking statements. The information contained on the Company’s website is not a part of this earnings release.

Performance Notes

Past performance is not indicative of future results. Except as specified, the performance information shown is as of September 30, 2016 and is based on preliminary data available at that time. The performance data shown reflects information for all actively and passively managed equity and fixed income accounts, including U.S. registered investment companies, European-domiciled retail funds and separate accounts for which performance data is available, including performance data for high net worth accounts available as of August 31, 2016. The performance data does not include accounts terminated prior to September 30, 2016 and accounts for which data has not yet been verified. If such accounts had been included, the performance data provided may have substantially differed from that shown.

Performance comparisons shown are gross-of-fees for institutional and high net worth separate accounts, and net-of-fees for retail funds. The performance tracking shown for index accounts is based on gross-of-fees performance and includes all institutional accounts and all iShares funds globally using an index strategy. AUM information is based on AUM available as of September 30, 2016 for each account or fund in the asset class shown without adjustment for overlapping management of the same account or fund. Fund performance reflects the reinvestment of dividends and distributions.

Source of performance information and peer medians is BlackRock, Inc. and is based in part on data from Lipper Inc. for U.S. funds and Morningstar, Inc. for non-U.S. funds.

-16-

EX-99.2

Exhibit 99.2

Exhibit 99.2

Q3 2016 Earnings

Earnings Release Supplement:

October 18, 2016

A broadly diversified business across clients, products and geographies

Q3 2016 Long-term Base Fees of $2.428 billion

Long-term Assets Under Management of $4.718 trillion at September 30, 2016

Product Type Client Type Style Region

Institutional Active    

29% 33%    

Equity Equity    Active

54% 52% Institutional 52% Americas Americas

62%    63% 64%

Retail iShares    

34% 26%    

Fixed Income Retail                

Fixed Income 29% 12% iShares

34%     37%

Index EMEA EMEA

iShares 41% 29% 29%

Multi-asset iShares 37%    

Multi-asset 12% 26%                

9%     Index

Alternatives 3% Alternatives 7%    11% Asia-Pacific 8% Asia-Pacific 7%

AUM Base Fees AUM Base Fees AUM Base Fees AUM Base Fees

Note: Base Fees and AUM by region data is based on client domicile.                

1

Long-term net flows ($ in billions)                

LTM organic asset growth rate (%) LTM organic base fee growth rate (%)                

Total Long-Term                Retail    

4% 5% 5% 4% 4% 4% 3% 3% 3% 11% 11% 11% 10% 10% 7% 4% 1% 0%

6% 6% 7% 6% 6% 6% 4% 2% 3%                

$88                

$70                

$54 $55                

$29    $35 $36                 

$23                

$14 $11                

$2 $5    $7 $7 $0 

$(7)                 $(6) $(2)

Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2014 2014 2015 2015 2015 2015 2016 2016 2016

2014 2014 2015 2015 2015 2015 2016 2016 2016                

iShares                Institutional     

9% 11% 14% 11% 12% 13% 11% 11% 15% 0% 1% 2% 1% 1% (1)% (1)% 0% 0%

$60 $51                

$44                

$35                $21 $21                

$18    $23 $24 $16 $6                $12 $6

$11                $5    

$(13) $(8)

$(29)                

Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2014 2014 2015 2015 2015 2015 2016 2016 2016 2014 2014 2015 2015 2015 2015 2016 2016 2016

Note: LTM organic asset growth rate measures rolling last twelve months net flows over beginning of period assets.    

2

Profitability ($ in millions, except per share data)

Operating Income and Margin, as adjusted

44.9%    

44.2% 43.6% 43.9% 43.9% 44.8%

41.2% 41.6% 41.6% 

$1,248 $1,227    

$1,214                $1,216

$1,154    $1,143 $1,179

$1,077    $1,047

Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2014 2014 2015 2015 2015 2015 2016 2016 2016

Net Income and EPS, as adjusted

$5.21 $5.00 $5.14

$4.82 $4.89 $4.96

$4.75 $4.78

$4.25

$890 $838 $844 $854 $821 $830 $797 $801

$711

Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2014 2014 2015 2015 2015 2015 2016 2016 2016

Net Income, as adjusted EPS, as adjusted

Operating Income, as adjusted Operating Margin, as adjusted

For further information and reconciliations between GAAP and as adjusted, see page 9 of this earnings release supplement, notes (1) through (4) in the current earnings release as well as previously filed Form 10-Ks, 10-Qs and 8-Ks.

3

Capital management (amounts in millions, except per share data)

Share repurchases and weighted average diluted shares

170.8 170.4 169.7

169.1 168.7 168.6

167.4 166.6 166.3

$300 $275 $275 $275 $275 $275 $275 $250 $250

Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2014 2014 2015 2015 2015 2015 2016 2016 2016

Share Repurchases Weighted average diluted shares

Amounts above exclude repurchases of employee tax withholdings related to employee stock transactions.

Dividends and Payout Ratios

109%(1)

81% 83% 78%

76% 74% 74% 70%

(1)

63% 64%

47% 48%

44% 43% 42% 43% 40% 35%

$2.29 $2.29 $2.29

$2.18 $2.18 $2.18 $2.18

$1.93 $1.93

Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2014 2014 2015 2015 2015 2015 2016 2016 2016

Dividends GAAP Dividend Payout Ratio Total GAAP Payout Ratio

GAAP Dividend Payout Ratio = Dividends declared / GAAP net income.

Total GAAP Payout Ratio = (Dividends declared + share repurchases) / GAAP net income.

(1) GAAP Dividend Payout Ratio and Total GAAP Payout Ratio include the pre-tax restructuring charge of $76 million.

4

Major market indices and exchange rates

% Change    % Change

Spot 9/30/2016 vs. Average Q3 2016 vs.

9/30/2015 6/30/2016 9/30/2016 6/30/2016 9/30/2015 Q3 2015 Q2 2016 Q3 2016 Q2 2016 Q3 2015

Equity Indices:                

Domestic                

S&P 500 1,920 2,099 2,168 3% 13% 2,026 2,075 2,161 4% 7%

Global                

MSCI Barra World Index 1,582 1,653 1,726 4% 9% 1,691 1,656 1,712 3% 1%

MSCI Europe Index 117 112 116 4% (1)% 127 114 115 1% (9)%

MSCI AC Asia Pacific Index 124 129 140 9% 13% 135 128 137 7% 1%

MSCI Emerging Markets Index 792 834 903 8% 14% 860 819 887 8% 3%

S&P Global Natural Resources 2,365 2,768 2,930 6% 24% 2,714 2,720 2,888 6% 6%

Fixed Income Index:                

Barclays U.S. Aggregate Bond Index 1,936 2,028 2,037 -% 5% 1,924 1,997 2,035 2% 6%

Foreign Exchange Rates:                

GBP to USD 1.51 1.33 1.30 (2)% (14)% 1.55 1.44 1.31 (9)% (15)%

EUR to USD 1.12 1.11 1.12 1% -% 1.11 1.13 1.12 (1)% 1%

Source: Bloomberg                

5

Quarterly revenue

Total Revenue

Q3 2016 $2,837 million

85%

2% 1%

5%2% 5%

Base Fees ex. Securities Lending Securities Lending Performance Fees Aladdin Other BRS

Other Revenue

Percentage Change Year-over-Year Sequential

Base Fees ex. SL 3% 3%

Securities Lending 23% (6)%

Performance Fees (72)% (22)%

Aladdin 13% 4%

Other BRS (31)% (15)%

Distribution Fees (29)% (9)%

Other Revenue (25)% (16)%

Total (3)% 1%

Q3 2016 Compared to Q3 2015

$(73) million

$27 $17 $(4) $(10) $(16) $(150) $63 $2,910 $2,837

Q3 2015 Base Fees ex Securities Aladdin Distribution Other BRS Other Performance Q3 2016 Sec Lending Lending fees Revenue Fees

Q3 2016 Compared to Q2 2016

$33 million

$66 $6 $(1) $(4) $(9) $(9) $(16) $2,804 $2,837

Q2 2016 Base Fees ex Aladdin Distribution Other BRS Other Securities Performance Q3 2016 Sec Lending fees Revenue Lending Fees

6

Quarterly investment advisory, administration fees and securities lending revenue

Investment advisory, administration fees and securities lending revenue

Q3 2015: $2,456 million Q3 2016: $2,546 million Q2 2016: $2,489 million

27% 27% 26%

19% 6% 7% 7% 16% 16%

3% 5% 17% 17% 16% 5%

7% 7% 8%

6% 7% 7% 13% 3% 11% 3% 11% 3%

Active Equity iShares Equity Non-ETF Index Equity Active Fixed Income iShares Fixed Income Non-ETF Index Fixed Income Multi-Asset Alternatives Cash

Q3 2016 Compared to Q3 2015

$90 million

$12 $8 $(4) $(18)

$25 $18 $(37)

$37 $2,546 $2,456 $49

Q3 2015 iShares Cash Active iShares Non-ETF Non-ETF Alts Active Multi- Q3 2016 FI FI EQ EQ FI EQ Asset

Q3 2016 Compared to Q2 2016

$57 million

$9 $3 $(1) $(4) $(6) $(8)

$16 $13 $2,546 $35 $2,489

Q2 2016 iShares iShares Active Non-ETF Active Cash Non-ETF Multi- Alts Q3 2016 EQ FI FI FI EQ EQ Asset

7

Quarterly expense

Expense, as adjusted, by category

Q3 2016 $1,621 million

7%

60%

12%

19%

2%

Employee Comp. & Benefits Distribution & Servicing Costs Direct Fund Expense General & Administration Amortization of Intangibles

Percentage Change Year-over-Year Sequential

Employee Comp. & Benefits (6)% (1)%

Distribution & Servicing Costs 12% 5%

Amort. of Deferred Sales Commissions (33)% (11)%

Direct Fund Expense 1% 3%

General & Administrative (2)% (1)%

Amortization of Intangibles (26)%—%

Total (4)%—%

Q3 2016 Compared to Q3 2015, as adjusted

$(62) million

$1,683 $(56) $(9) $(7) $(4) $2 $12 $1,621

Q3 2015 Comp & Amort—G&A Amort—Def Direct Distribution Q3 2016 Benefits Intang Sales Comm Fund & Servicing Assets

Q3 2016 Compared to Q2 2016, as adjusted

$(4) million

$1,625 $(9) $(4) $(1) $5 $5 $1,621

Q2 2016 Comp & G&A Amort—Def Direct Distribution Q3 2016 Benefits Sales Comm Fund & Servicing

Expense, as adjusted, includes non-GAAP adjustments related to PNC LTIP funding obligation of $7 million in the third quarter of 2016, $10 million in third quarter of 2015 and $6 million in the second quarter of 2016. Expense, as adjusted, also includes a non-GAAP adjustments for compensation related to appreciation (depreciation) on certain deferred compensation plans of $(5) million in the third quarter of 2015. For further information, see notes (1) through (4) in the current earnings release.

8

Reconciliation between GAAP and as adjusted ($ in millions)    

2014 2015 2016

Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

Operating Income                

GAAP $1,157 $1,144 $1,067 $1,238 $1,222 $1,137 $963 $1,173 $1,209

Non-GAAP                

adjustments 57 10 10 10 5 6 84 6 7

As Adjusted $1,214 $1,154 $1,077 $1,248 $1,227 $1,143 $1,047 $1,179 $1,216

Nonoperating Income                

(Expense)                

GAAP $(52) $(60) $16 $(41) $(48) $11 $(48) $(25) $1

Non-GAAP                

adjustments 44 6 (5) (9) 16 (10) 10 (6) (2)

As Adjusted $(8) $(54) $11 $(50) $(32) $1 $(38) $(31) $(1)

Net Income                

GAAP $917 $813 $822 $819 $843 $861 $657 $789 $875

Non-GAAP                

adjustments (27) 8 8 19 1 (60) 54 8 (21)

As Adjusted $890 $821 $830 $838 $844 $801 $711 $797 $854

Non-GAAP adjustments include amounts related to a restructuring charge, PNC LTIP funding obligation, compensation related to appreciation (depreciation) on certain deferred compensation plans and noncash income tax matters, as applicable.

For further information and reconciliation between GAAP and as adjusted, see notes (1) through (4) in the current earnings release as well as previously filed Form 10-Ks, 10-Qs and 8-Ks.

9

Important Notes

This presentation, and other statements that BlackRock, Inc. (“BlackRock”) may make, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to BlackRock’s future financial or business performance, strategies or expectations. Forward-looking statements are typically identified by words or phrases such as “trend,” “potential,” “opportunity,” “pipeline,” “believe,” “comfortable,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may” and similar expressions.

BlackRock cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made, and BlackRock assumes no duty to and does not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance.

In addition to risk factors previously disclosed in BlackRock’s Securities and Exchange Commission reports and those identified elsewhere in this presentation, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: (1) the introduction, withdrawal, success and timing of business initiatives and strategies; (2) changes and volatility in political, economic or industry conditions, the interest rate environment, foreign exchange rates or financial and capital markets, which could result in changes in demand for products or services or in the value of assets under management; (3) the relative and absolute investment performance of BlackRock’s investment products; (4) the impact of increased competition; (5) the impact of future acquisitions or divestitures; (6) the unfavorable resolution of legal proceedings; (7) the extent and timing of any share repurchases; (8) the impact, extent and timing of technological changes and the adequacy of intellectual property, information and cyber security protection; (9) the impact of legislative and regulatory actions and reforms, including the Dodd-Frank Wall Street Reform and Consumer Protection Act, and regulatory, supervisory or enforcement actions of government agencies relating to BlackRock or The PNC Financial Services Group, Inc.; (10) terrorist activities, international hostilities and natural disasters, which may adversely affect the general economy, domestic and local financial and capital markets, specific industries or BlackRock; (11) the ability to attract and retain highly talented professionals; (12) fluctuations in the carrying value of BlackRock’s economic investments; (13) the impact of changes to tax legislation, including income, payroll and transaction taxes, and taxation on products or transactions, which could affect the value proposition to clients and, generally, the tax position of BlackRock; (14) BlackRock’s success in maintaining the distribution of its products; (15) the impact of BlackRock electing to provide support to its products from time to time and any potential liabilities related to securities lending or other indemnification obligations; and (16) the impact of problems at other financial institutions or the failure or negative performance of products at other financial institutions.

This presentation also includes non-GAAP financial measures. You can find our presentations on the most directly comparable GAAP financial measures calculated in accordance with GAAP and our reconciliations on page 9 of this earnings release supplement, our current earnings release dated October 18, 2016, and BlackRock’s other periodic reports, which are available on BlackRock’s website at www.blackrock.com.

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