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): July 16, 2018

BLACKROCK, INC.

(Exact name of registrant as specified in its charter)

DELAWARE (State or other jurisdiction of incorporation) 001-33099 (Commission File Number) 32-0174431 (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))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition

On July 16, 2018, BlackRock, Inc. (the “Company”) reported results of operations for the three and six months ended June 30, 2018. 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 June 30, 2018 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 July 16, 2018 issued by the Company
99.2	Second Quarter 2018 Earnings – Earnings Release Supplement

EXHIBIT INDEX

99.1	Earnings release dated July 16, 2018 issued by the Company
99.2	Second Quarter 2018 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 S. Shedlin
Date: July 16, 2018	Senior Managing Director and
	Chief Financial Officer
	Gary S. Shedlin

EX-99.1

Exhibit 99.1

INVESTOR RELATIONS: Tom Wojcik212.810.8127 MEDIARELATIONS: Brian Beades    212.810.5596

New York, July 16, 2018 – BlackRock, Inc. (NYSE: BLK) today reported financial results for the three months and six months ended June 30, 2018.

BlackRock Reports Second Quarter 2018 Diluted EPS of $6.62, or $6.66 as adjusted

$20 billionof total net inflows, positive across active, index and cash management

11% revenue growth year-over-year driven by base fees, performance fees and technology services revenue

16% operating income growth year-over-year reflects

operating margin expansion

27% diluted EPS growth (28% as adjusted) driven in part by lower tax rate

$300 million of quarterly share repurchases

Laurence D. Fink, Chairman and CEO:

“BlackRock delivered strong financial results in the second quarter, as revenue increased 11%, operating income increased 16% and EPS increased 28% year-over-year.

“Our diverse global platform generated $20 billion of total net inflows in the quarter and $276 billion over the last twelve months. Secular trends supportive of BlackRock’s future growth continue, especially in technology, including Aladdin and digital wealth, alternatives and iShares.

“Despite an industry-wide slowdown in flows associated with investor uncertainty in the current market environment, our dialogue with clients and opportunities to provide long-term solutions are more robust than ever before.

“We have seen markets like these before, and BlackRock’s product breadth, unparalleled portfolio construction capabilities, digital tools and technology uniquely position us to deliver long-term value to clients and shareholders.”

FINANCIAL RESULTS

	Q2			Q2
(in millions, except per share data)	2018			2017*			Change
AUM	$	6,299,706		$	5,689,273			11	%
Total net flows	$	20,015		$	103,616
GAAP basis:
Revenue	$	3,605		$	3,236			11	%
Operating income	$	1,440		$	1,237			16	%
Operating margin		39.9	%		38.2	%		170	bps
Net income(1)	$	1,073		$	854			26	%
Diluted EPS	$	6.62		$	5.20			27	%
Weighted average diluted    shares		162.2			164.1			(1	)%
As Adjusted:
Operating income(2)	$	1,443		$	1,241			16	%
Operating margin(2)		45.2	%		43.9	%		130	bps
Net income(1) (2)	$	1,080		$	857			26	%
Diluted EPS(2)	$	6.66		$	5.22			28	%

^* Results for 2017 were recast to reflect the adoption of the new revenue recognition standard. For further information, refer to the Current Report on Form 8-K furnished on March 22, 2018.

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

⁽²⁾ See notes (1) through (3) to the condensed consolidated statements of income and supplemental information on pages 11 and 12 for more information on as adjusted items and the reconciliation to GAAP.

NET FLOW HIGHLIGHTS

Long-term net inflows of $14.5 billion by region:
	Americas:	$	21.0	billion
	EMEA:	$	(7.4)	billion
	APAC:	$	0.9	billion

Long-term net inflows of $14.5 billion by client type:
	Retail:		$	5.5	billion
		U.S.:	$	8.2	billion
		International:	$	(2.7)	billion

iShares®:		$	17.8	billion
	Core:	$	20.4	billion
	Non-Core:	$	(2.6)	billion

Institutional:		$	(8.8)	billion
	Index:	$	(13.5)	billion
	Active:	$	4.7	billion

Cash management net inflows of $5.7 billion

1

BUSINESS RESULTS

								June 30, 2018			Q2 2018
	Q2 2018			June 30, 2018		Q2 2018		AUM			Base fees(1)
(in millions), (unaudited)	Net flows			AUM		Base fees(1)		% of Total			% of Total
RESULTS BY CLIENT TYPE
Retail	$	5,496		$	636,825	$	858		10	%		29	%
iShares ETFs		17,811			1,776,765		1,143		28	%		39	%
Institutional:
Active		4,657			1,123,388		511		18	%		18	%
Index		(13,466	)		2,304,764		275		37	%		9	%
Total institutional		(8,809	)		3,428,152		786		55	%		27	%
Long-term		14,498			5,841,742		2,787		93	%		95	%
Cash management		5,728			457,054		157		7	%		5	%
Advisory		(211	)		910		-		-			-
Total	$	20,015		$	6,299,706	$	2,944		100	%		100	%
RESULTS BY INVESTMENT STYLE
Active	$	7,889		$	1,682,794	$	1,352		27	%		46	%
Index and iShares ETFs		6,609			4,158,948		1,435		66	%		49	%
Long-term		14,498			5,841,742		2,787		93	%		95	%
Cash management		5,728			457,054		157		7	%		5	%
Advisory		(211	)		910		-		-			-
Total	$	20,015		$	6,299,706	$	2,944		100	%		100	%
RESULTS BY PRODUCT TYPE
Equity	$	(22,377	)	$	3,366,480	$	1,524		53	%		52	%
Fixed income		26,420			1,858,609		766		30	%		26	%
Multi-asset		8,376			481,666		295		8	%		10	%
Alternatives		2,079			134,987		202		2	%		7	%
Long-term		14,498			5,841,742		2,787		93	%		95	%
Cash management		5,728			457,054		157		7	%		5	%
Advisory		(211	)		910		-		-			-
Total	$	20,015		$	6,299,706	$	2,944		100	%		100	%

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

INVESTMENT PERFORMANCE AT JUNE 30, 2018⁽¹⁾

	One-year period	Three-year period	Five-year period
Fixed income:
Actively managed AUM above benchmark or peer median
Taxable	78%	71%	85%
Tax-exempt	78%	77%	76%
Index AUM within or above applicable tolerance	96%	99%	100%
Equity:
Actively managed AUM above benchmark or peer median
Fundamental	59%	78%	80%
Systematic	86%	82%	91%
Index AUM within or above applicable tolerance	98%	98%	99%

⁽¹⁾ Past performance is not indicative of future results. The performance information shown is based on preliminary available data. Please refer to page 13 for performance disclosure detail.

TELECONFERENCE, WEBCAST AND PRESENTATION INFORMATION

Chairman and Chief Executive Officer, Laurence D. Fink, President, Robert S. Kapito, and Chief Financial Officer, Gary S. Shedlin, will host a teleconference call for investors and analysts on Monday, July 16, 2018 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 5768688). 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 Monday, July 16, 2018 and ending at midnight on Monday, July 30, 2018. 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 5768688. To access the webcast, please visit the investor relations section of www.blackrock.com.

ABOUT BLACKROCK

BlackRock helps investors build better financial futures. As a fiduciary to our clients, we provide the investment and technology solutions they need when planning for their most important goals. As of June 30, 2018, the firm managed approximately $6.3 trillion in assets on behalf of investors worldwide. For additional information on BlackRock, please visit www.blackrock.com | Twitter: @blackrock | Blog: www.blackrockblog.com | LinkedIn: www.linkedin.com/company/blackrock.

2

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION

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

										Three Months
	Three Months Ended									Ended
	June 30,									March 31,
	2018			2017*			Change			2018			Change
Revenue
Investment advisory, administration fees and   securities lending revenue	$	2,944		$	2,667		$	277		$	2,947		$	(3	)
Investment advisory performance fees		91			48			43			70			21
Technology services revenue		198			158			40			184			14
Distribution fees		294			292			2			311			(17	)
Advisory and other revenue		78			71			7			71			7
Total revenue		3,605			3,236			369			3,583			22
Expense
Employee compensation and benefits		1,082			998			84			1,121			(39	)
Distribution and servicing costs		415			410			5			432			(17	)
Direct fund expense		264			221			43			261			3
General and administration		393			345			48			383			10
Amortization of intangible assets		11			25			(14	)		11			-
Total expense		2,165			1,999			166			2,208			(43	)
Operating income		1,440			1,237			203			1,375			65
Nonoperating income (expense)
Net gain (loss) on investments		3			36			(33	)		15			(12	)
Interest and dividend income		19			13			6			15			4
Interest expense		(46	)		(48	)		2			(46	)		-
Total nonoperating income (expense)		(24	)		1			(25	)		(16	)		(8	)
Income before income taxes		1,416			1,238			178			1,359			57
Income tax expense (benefit)		338			374			(36	)		265			73
Net income		1,078			864			214			1,094			(16	)
Less:
Net income (loss) attributable to noncontrolling   interests		5			10			(5	)		5			-
Net income attributable to BlackRock, Inc.	$	1,073		$	854		$	219		$	1,089		$	(16	)
Weighted-average common shares outstanding
Basic		160,980,960			162,502,465			(1,521,505	)		161,250,018			(269,058	)
Diluted		162,161,937			164,149,861			(1,987,924	)		162,918,961			(757,024	)
Earnings per share attributable to BlackRock, Inc.    common stockholders (3)
Basic	$	6.67		$	5.26		$	1.41		$	6.75		$	(0.08	)
Diluted	$	6.62		$	5.20		$	1.42		$	6.68		$	(0.06	)
Cash dividends declared and paid per share	$	2.88		$	2.50		$	0.38		$	2.88		$	-
Supplemental information:
AUM (end of period)	$	6,299,706		$	5,689,273		$	610,433		$	6,316,984		$	(17,278	)
Shares outstanding (end of period)		160,779,596			162,207,216			(1,427,620	)		161,275,008			(495,412	)
GAAP:
Operating margin		39.9	%		38.2	%		170	bps		38.4	%		150	bps
Effective tax rate		24.0	%		30.5	%		(650	) bps		19.6	%		440	bps
As adjusted:
Operating income (1)	$	1,443		$	1,241		$	202		$	1,378		$	65
Operating margin (1)		45.2	%		43.9	%		130	bps		44.1	%		110	bps
Nonoperating income (expense), less net income      (loss) attributable to noncontrolling interests	$	(29	)	$	(9	)	$	(20	)	$	(21	)	$	(8	)
Net income attributable to BlackRock, Inc. (2)	$	1,080		$	857		$	223		$	1,092		$	(12	)
Diluted earnings attributable to BlackRock, Inc.      common stockholders per share (2) (3)	$	6.66		$	5.22		$	1.44		$	6.70		$	(0.04	)
Effective tax rate		23.7	%		30.4	%		(670	) bps		19.6	%		410	bps
See pages 11-12 for the reconciliation to GAAP and notes (1) through (3) for more information on as adjusted items.

* Results for 2017 were recast to reflect the adoption of the new revenue recognition standard. For further information, refer to the Current Report on Form 8-K furnished on March 22, 2018.  

3

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION

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

	Six Months Ended
	June 30,
	2018			2017*			Change
Revenue
Investment advisory, administration fees and securities       lending revenue	$	5,891		$	5,190		$	701
Investment advisory performance fees		161			118			43
Technology services revenue		382			312			70
Distribution fees		605			579			26
Advisory and other revenue		149			129			20
Total revenue		7,188			6,328			860
Expense
Employee compensation and benefits		2,203			2,019			184
Distribution and servicing costs		847			811			36
Direct fund expense		525			427			98
General and administration		776			641			135
Amortization of intangible assets		22			50			(28	)
Total expense		4,373			3,948			425
Operating income		2,815			2,380			435
Nonoperating income (expense)
Net gain (loss) on investments		18			87			(69	)
Interest and dividend income		34			20			14
Interest expense		(92	)		(113	)		21
Total nonoperating income (expense)		(40	)		(6	)		(34	)
Income before income taxes		2,775			2,374			401
Income tax expense		603			642			(39	)
Net income		2,172			1,732			440
Less:
Net income (loss) attributable to noncontrolling interests		10			19			(9	)
Net income attributable to BlackRock, Inc.	$	2,162		$	1,713		$	449
Weighted-average common shares outstanding
Basic		161,114,746			162,758,112			(1,643,366	)
Diluted		162,532,637			164,544,760			(2,012,123	)
Earnings per share attributable to BlackRock, Inc.    common stockholders (3)
Basic	$	13.42		$	10.52		$	2.90
Diluted	$	13.30		$	10.41		$	2.89
Cash dividends declared and paid per share	$	5.76		$	5.00		$	0.76
Supplemental information:
AUM (end of period)	$	6,299,706		$	5,689,273		$	610,433
Shares outstanding (end of period)		160,779,596			162,207,216			(1,427,620	)
GAAP:
Operating margin		39.2	%		37.6	%		160	bps
Effective tax rate		21.8	%		27.3	%		(550	) bps
As adjusted:
Operating income (1)	$	2,821		$	2,388		$	433
Operating margin (1)		44.7	%		43.3	%		140	bps
Nonoperating income (expense), less net income (loss)      attributable to noncontrolling interests	$	(50	)	$	(25	)	$	(25	)
Net income attributable to BlackRock, Inc. (2)	$	2,172		$	1,719		$	453
Diluted earnings attributable to BlackRock, Inc.      common stockholders per share (2) (3)	$	13.36		$	10.45		$	2.91
Effective tax rate		21.7	%		27.3	%		(560	) bps
See pages 11-12 for the reconciliation to GAAP and notes (1) through (3) for more information on as adjusted items.

* Results for 2017 were recast to reflect the adoption of the new revenue recognition standard. For further information, refer to the Current Report on Form 8-K furnished on March 22, 2018.  

4

ASSETS UNDER MANAGEMENT

(in millions), (unaudited)

Current Quarter Component Changes by Client Type and Product Type
			Net
	March 31,		inflows			Market						June 30,
	2018		(outflows)			change			FX impact (1)			2018		Average AUM (2)
Retail:
Equity	$	232,955	$	(1,564	)	$	5,110		$	(3,884	)	$	232,617	$	234,543
Fixed income		266,571		6,218			(3,431	)		(2,371	)		266,987		266,611
Multi-asset		121,601		(80	)		(1,649	)		(573	)		119,299		120,909
Alternatives		17,236		922			(57	)		(179	)		17,922		17,552
Retail subtotal		638,363		5,496			(27	)		(7,007	)		636,825		639,615
iShares ETFs:
Equity		1,344,564		1,379			7,901			(7,556	)		1,346,288		1,355,041
Fixed income		394,191		15,948			(4,567	)		(3,841	)		401,731		399,012
Multi-asset		3,766		23			(20	)		(2	)		3,767		3,761
Alternatives		25,404		461			(812	)		(74	)		24,979		25,808
iShares ETFs subtotal		1,767,925		17,811			2,502			(11,473	)		1,776,765		1,783,622
Institutional:
Active:
Equity		136,470		(1,213	)		2,345			(2,616	)		134,986		136,675
Fixed income		563,572		(2,919	)		(3,077	)		(7,132	)		550,444		554,919
Multi-asset		343,344		7,909			6,023			(6,731	)		350,545		347,240
Alternatives		87,060		880			886			(1,413	)		87,413		87,128
Active subtotal		1,130,446		4,657			6,177			(17,892	)		1,123,388		1,125,962
Index:
Equity		1,649,248		(20,979	)		46,758			(22,438	)		1,652,589		1,658,275
Fixed income		662,189		7,173			(5,329	)		(24,586	)		639,447		648,092
Multi-asset		7,986		524			(259	)		(196	)		8,055		7,905
Alternatives		4,904		(184	)		72			(119	)		4,673		4,681
Index subtotal		2,324,327		(13,466	)		41,242			(47,339	)		2,304,764		2,318,953
Institutional subtotal		3,454,773		(8,809	)		47,419			(65,231	)		3,428,152		3,444,915
Long-term		5,861,061		14,498			49,894			(83,711	)		5,841,742		5,868,152
Cash management		454,784		5,728			328			(3,786	)		457,054		458,521
Advisory (3)		1,139		(211	)		22			(40	)		910		1,048
Total	$	6,316,984	$	20,015		$	50,244		$	(87,537	)	$	6,299,706	$	6,327,721
Current Quarter Component Changes by Investment Style and Product Type (Long-term)
			Net
	March 31,		inflows			Market						June 30,
	2018		(outflows)			change			FX impact (1)			2018		Average AUM (2)
Active:
Equity	$	308,367	$	(4,395	)	$	4,999		$	(4,873	)	$	304,098	$	308,232
Fixed income		816,274		2,652			(6,564	)		(8,847	)		803,515		807,687
Multi-asset		464,945		7,830			4,374			(7,304	)		469,845		468,149
Alternatives		104,297		1,802			829			(1,592	)		105,336		104,680
Active subtotal		1,693,883		7,889			3,638			(22,616	)		1,682,794		1,688,748
Index and iShares ETFs:
iShares ETFs:
Equity		1,344,564		1,379			7,901			(7,556	)		1,346,288		1,355,041
Fixed income		394,191		15,948			(4,567	)		(3,841	)		401,731		399,012
Multi-asset		3,766		23			(20	)		(2	)		3,767		3,761
Alternatives		25,404		461			(812	)		(74	)		24,979		25,808
iShares ETFs subtotal		1,767,925		17,811			2,502			(11,473	)		1,776,765		1,783,622
Non-ETF Index:
Equity		1,710,306		(19,361	)		49,214			(24,065	)		1,716,094		1,721,261
Fixed income		676,058		7,820			(5,273	)		(25,242	)		653,363		661,935
Multi-asset		7,986		523			(259	)		(196	)		8,054		7,905
Alternatives		4,903		(184	)		72			(119	)		4,672		4,681
Non-ETF Index subtotal		2,399,253		(11,202	)		43,754			(49,622	)		2,382,183		2,395,782
Index & iShares ETFs subtotal		4,167,178		6,609			46,256			(61,095	)		4,158,948		4,179,404
Long-term	$	5,861,061	$	14,498		$	49,894		$	(83,711	)	$	5,841,742	$	5,868,152
Current Quarter Component Changes by Product Type (Long-term)
			Net
	March 31,		inflows			Market						June 30,
	2018		(outflows)			change			FX impact (1)			2018		Average AUM (2)
Equity	$	3,363,237	$	(22,377	)	$	62,114		$	(36,494	)	$	3,366,480	$	3,384,534
Fixed income		1,886,523		26,420			(16,404	)		(37,930	)		1,858,609		1,868,634
Multi-asset		476,697		8,376			4,095			(7,502	)		481,666		479,815
Alternatives:
Core		101,563		1,905			816			(1,516	)		102,768		102,047
Currency and commodities(4)		33,041		174			(727	)		(269	)		32,219		33,122
Alternatives subtotal		134,604		2,079			89			(1,785	)		134,987		135,169
Long-term	$	5,861,061	$	14,498		$	49,894		$	(83,711	)	$	5,841,742	$	5,868,152

⁽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 ETFs.

5

ASSETS UNDER MANAGEMENT

(in millions), (unaudited)

Year-to-Date Component Changes by Client Type and Product Type
			Net
	December 31,		inflows			Market						June 30,
	2017		(outflows)			change			FX impact (1)			2018		Average AUM (2)
Retail:
Equity	$	233,218	$	2,683		$	(1,601	)	$	(1,683	)	$	232,617	$	236,491
Fixed income		257,571		16,283			(5,619	)		(1,248	)		266,987		264,271
Multi-asset		120,855		1,955			(3,205	)		(306	)		119,299		121,817
Alternatives		16,733		1,260			6			(77	)		17,922		17,357
Retail subtotal		628,377		22,181			(10,419	)		(3,314	)		636,825		639,936
iShares ETFs:
Equity		1,329,610		31,093			(9,444	)		(4,971	)		1,346,288		1,363,023
Fixed income		395,252		19,158			(10,321	)		(2,358	)		401,731		397,326
Multi-asset		3,761		70			(60	)		(4	)		3,767		3,778
Alternatives		23,616		2,138			(721	)		(54	)		24,979		25,319
iShares ETFs subtotal		1,752,239		52,459			(20,546	)		(7,387	)		1,776,765		1,789,446
Institutional:
Active:
Equity		137,185		(1,510	)		606			(1,295	)		134,986		138,306
Fixed income		570,050		(6,988	)		(10,212	)		(2,406	)		550,444		560,667
Multi-asset		347,825		3,799			2,863			(3,942	)		350,545		347,459
Alternatives		84,248		2,266			1,560			(661	)		87,413		86,441
Active subtotal		1,139,308		(2,433	)		(5,183	)		(8,304	)		1,123,388		1,132,873
Index:
Equity		1,671,628		(28,128	)		17,450			(8,361	)		1,652,589		1,676,202
Fixed income		632,592		24,650			(8,315	)		(9,480	)		639,447		643,658
Multi-asset		7,837		564			(372	)		26			8,055		8,208
Alternatives		4,750		(171	)		115			(21	)		4,673		4,780
Index subtotal		2,316,807		(3,085	)		8,878			(17,836	)		2,304,764		2,332,848
Institutional subtotal		3,456,115		(5,518	)		3,695			(26,140	)		3,428,152		3,465,721
Long-term		5,836,731		69,122			(27,270	)		(36,841	)		5,841,742		5,895,103
Cash management		449,949		8,403			413			(1,711	)		457,054		456,259
Advisory (3)		1,515		(565	)		8			(48	)		910		1,192
Total	$	6,288,195	$	76,960		$	(26,849	)	$	(38,600	)	$	6,299,706	$	6,352,554
Year-to-Date Component Changes by Investment Style and Product Type (Long-term)
			Net
	December 31,		inflows			Market						June 30,
	2017		(outflows)			change			FX impact (1)			2018		Average AUM (2)
Active:
Equity	$	311,209	$	(3,390	)	$	(1,460	)	$	(2,261	)	$	304,098	$	312,829
Fixed income		815,135		7,510			(15,786	)		(3,344	)		803,515		811,643
Multi-asset		468,679		5,754			(342	)		(4,246	)		469,845		469,276
Alternatives		100,982		3,526			1,566			(738	)		105,336		103,798
Active subtotal		1,696,005		13,400			(16,022	)		(10,589	)		1,682,794		1,697,546
Index and iShares ETFs:
iShares ETFs:
Equity		1,329,610		31,093			(9,444	)		(4,971	)		1,346,288		1,363,023
Fixed income		395,252		19,158			(10,321	)		(2,358	)		401,731		397,326
Multi-asset		3,761		70			(60	)		(4	)		3,767		3,778
Alternatives		23,616		2,138			(721	)		(54	)		24,979		25,319
iShares ETFs subtotal		1,752,239		52,459			(20,546	)		(7,387	)		1,776,765		1,789,446
Non-ETF Index:
Equity		1,730,822		(23,565	)		17,915			(9,078	)		1,716,094		1,738,170
Fixed income		645,078		26,435			(8,360	)		(9,790	)		653,363		656,953
Multi-asset		7,838		564			(372	)		24			8,054		8,208
Alternatives		4,749		(171	)		115			(21	)		4,672		4,780
Non-ETF Index subtotal		2,388,487		3,263			9,298			(18,865	)		2,382,183		2,408,111
Index & iShares ETFs subtotal		4,140,726		55,722			(11,248	)		(26,252	)		4,158,948		4,197,557
Long-term	$	5,836,731	$	69,122		$	(27,270	)	$	(36,841	)	$	5,841,742	$	5,895,103
Year-to-Date Component Changes by Product Type (Long-term)
			Net
	December 31,		inflows			Market						June 30,
	2017		(outflows)			change			FX impact (1)			2018		Average AUM (2)
Equity	$	3,371,641	$	4,138		$	7,011		$	(16,310	)	$	3,366,480	$	3,414,022
Fixed income		1,855,465		53,103			(34,467	)		(15,492	)		1,858,609		1,865,922
Multi-asset		480,278		6,388			(774	)		(4,226	)		481,666		481,262
Alternatives:
Core		98,533		3,437			1,567			(769	)		102,768		101,197
Currency and commodities(4)		30,814		2,056			(607	)		(44	)		32,219		32,700
Alternatives subtotal		129,347		5,493			960			(813	)		134,987		133,897
Long-term	$	5,836,731	$	69,122		$	(27,270	)	$	(36,841	)	$	5,841,742	$	5,895,103

⁽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 seven months.

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

⁽⁴⁾ Amounts include commodity iShares ETFs.

6

ASSETS UNDER MANAGEMENT

(in millions), (unaudited)

Year-over-Year Component Changes by Client Type and Product Type
			Net
	June 30,		inflows			Market					June 30,
	2017		(outflows)			change			FX impact (1)		2018		Average AUM (2)
Retail:
Equity	$	215,808	$	5,553		$	10,214		$	1,042	$	232,617	$	230,679
Fixed income		240,932		28,902			(3,398	)		551		266,987		256,593
Multi-asset		113,903		4,991			273			132		119,299		119,738
Alternatives		16,113		1,494			213			102		17,922		17,181
Retail subtotal		586,756		40,940			7,302			1,827		636,825		624,191
iShares ETFs:
Equity		1,139,850		109,084			96,272			1,082		1,346,288		1,296,774
Fixed income		364,991		45,356			(9,874	)		1,258		401,731		389,917
Multi-asset		3,240		501			25			1		3,767		3,639
Alternatives		20,155		4,625			196			3		24,979		23,689
iShares ETFs subtotal		1,528,236		159,566			86,619			2,344		1,776,765		1,714,019
Institutional:
Active:
Equity		126,446		(6,042	)		14,130			452		134,986		134,602
Fixed income		553,652		(4,179	)		(866	)		1,837		550,444		560,698
Multi-asset		311,921		10,187			26,326			2,111		350,545		337,401
Alternatives		83,836		(56	)		3,470			163		87,413		85,288
Active subtotal		1,075,855		(90	)		43,060			4,563		1,123,388		1,117,989
Index:
Equity		1,532,592		(56,739	)		172,551			4,185		1,652,589		1,635,591
Fixed income		545,049		85,523			4,068			4,807		639,447		615,894
Multi-asset		7,672		(33	)		346			70		8,055		8,037
Alternatives		7,880		(3,661	)		372			82		4,673		5,643
Index subtotal		2,093,193		25,090			177,337			9,144		2,304,764		2,265,165
Institutional subtotal		3,169,048		25,000			220,397			13,707		3,428,152		3,383,154
Long-term		5,284,040		225,506			314,318			17,878		5,841,742		5,721,364
Cash management		402,575		52,189			1,026			1,264		457,054		440,751
Advisory (3)		2,658		(1,695	)		(106	)		53		910		1,769
Total	$	5,689,273	$	276,000		$	315,238		$	19,195	$	6,299,706	$	6,163,884
Year-over-Year Component Changes by Investment Style and Product Type (Long-term)
			Net
	June 30,		inflows			Market					June 30,
	2017		(outflows)			change			FX impact (1)		2018		Average AUM (2)
Active:
Equity	$	290,196	$	(7,436	)	$	20,141		$	1,197	$	304,098	$	306,495
Fixed income		782,622		22,978			(4,409	)		2,324		803,515		804,466
Multi-asset		425,824		15,178			26,599			2,244		469,845		457,139
Alternatives		99,949		1,438			3,683			266		105,336		102,469
Active subtotal		1,598,591		32,158			46,014			6,031		1,682,794		1,670,569
Index and iShares ETFs:
iShares ETFs
Equity		1,139,850		109,084			96,272			1,082		1,346,288		1,296,774
Fixed income		364,991		45,356			(9,874	)		1,258		401,731		389,917
Multi-asset		3,240		501			25			1		3,767		3,639
Alternatives		20,155		4,625			196			3		24,979		23,689
iShares ETFs subtotal		1,528,236		159,566			86,619			2,344		1,776,765		1,714,019
Non-ETF Index
Equity		1,584,650		(49,792	)		176,754			4,482		1,716,094		1,694,377
Fixed income		557,011		87,268			4,213			4,871		653,363		628,719
Multi-asset		7,672		(33	)		346			69		8,054		8,037
Alternatives		7,880		(3,661	)		372			81		4,672		5,643
Non-ETF Index subtotal		2,157,213		33,782			181,685			9,503		2,382,183		2,336,776
Index & iShares ETFs subtotal		3,685,449		193,348			268,304			11,847		4,158,948		4,050,795
Long-term	$	5,284,040	$	225,506		$	314,318		$	17,878	$	5,841,742	$	5,721,364
Year-over-Year Component Changes by Product Type (Long-term)
			Net
	June 30,		inflows			Market					June 30,
	2017		(outflows)			change			FX impact (1)		2018		Average AUM (2)
Equity	$	3,014,696	$	51,856		$	293,167		$	6,761	$	3,366,480	$	3,297,646
Fixed income		1,704,624		155,602			(10,070	)		8,453		1,858,609		1,823,102
Multi-asset		436,736		15,646			26,970			2,314		481,666		468,815
Alternatives:
Core		97,551		1,362			3,607			248		102,768		99,991
Currency and commodities(4)		30,433		1,040			644			102		32,219		31,810
Alternatives subtotal		127,984		2,402			4,251			350		134,987		131,801
Long-term	$	5,284,040	$	225,506		$	314,318		$	17,878	$	5,841,742	$	5,721,364

⁽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 thirteen months.

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

⁽⁴⁾ Amounts include commodity iShares ETFs.

7

SUMMARY OF REVENUE

									Three Months
	Three Months Ended								Ended					Six Months Ended
	June 30,								March 31,					June 30,
(in millions), (unaudited)	2018			2017*		Change			2018		Change			2018		2017*		Change
Investment advisory, administration fees and securities lending revenue:
Equity:
Active	$	426		$	411	$	15		$	438	$	(12	)	$	864	$	811	$	53
iShares ETFs		911			776		135			926		(15	)		1,837		1,497		340
Non-ETF Index		187			175		12			176		11			363		335		28
Equity subtotal		1,524			1,362		162			1,540		(16	)		3,064		2,643		421
Fixed income:
Active		458			424		34			456		2			914		831		83
iShares ETFs		207			200		7			208		(1	)		415		385		30
Non-ETF Index		101			84		17			93		8			194		169		25
Fixed income subtotal		766			708		58			757		9			1,523		1,385		138
Multi-asset		295			282		13			296		(1	)		591		554		37
Alternatives:
Core		176			156		20			178		(2	)		354		300		54
Currency and commodities		26			22		4			25		1			51		44		7
Alternatives subtotal		202			178		24			203		(1	)		405		344		61
Long-term		2,787			2,530		257			2,796		(9	)		5,583		4,926		657
Cash management		157			137		20			151		6			308		264		44
Total base fees		2,944			2,667		277			2,947		(3	)		5,891		5,190		701
Investment advisory performance fees:
Equity		43			12		31			18		25			61		27		34
Fixed income		(1	)		1		(2	)		3		(4	)		2		11		(9	)
Multi-asset		9			7		2			5		4			14		12		2
Alternatives		40			28		12			44		(4	)		84		68		16
Total performance fees		91			48		43			70		21			161		118		43
Technology services revenue		198			158		40			184		14			382		312		70
Distribution fees:
Retrocessions		181			160		21			192		(11	)		373		315		58
12b-1 fees (U.S. mutual funds distribution fees)		103			121		(18	)		108		(5	)		211		243		(32	)
Other		10			11		(1	)		11		(1	)		21		21		-
Total distribution fees		294			292		2			311		(17	)		605		579		26
Advisory and other revenue:
Advisory		33			25		8			21		12			54		49		5
Other		45			46		(1	)		50		(5	)		95		80		15
Advisory and other revenue		78			71		7			71		7			149		129		20
Total revenue	$	3,605		$	3,236	$	369		$	3,583	$	22		$	7,188	$	6,328	$	860

* Results for 2017 were recast to reflect the adoption of the new revenue recognition standard. For further information, refer to the Current Report on Form 8-K furnished on March 22, 2018.

Highlights

▪ Investment advisory, administration fees and securities lending revenue increased $277 million from the second quarter of 2017, reflecting the impact of higher markets and organic growth on average AUM, partially offset by previously announced pricing changes to select investment products. Securities lending revenue of $183 million in the current quarter compared with $156 million in the second quarter of 2017.

Investment advisory, administration fees and securities lending revenue of $2,944 million in the current quarter compared with $2,947 million in the first quarter of 2018, reflecting lower average AUM, including the impact of foreign exchange movements, partially offset by the effect of one additional day in the current quarter and seasonally higher securities lending revenue. 

▪ Performance fees increased $43 million from the second quarter of 2017, primarily reflecting improved performance in long-only equity and single strategy hedge fund products, and increased $21 million from the first quarter of 2018, primarily reflecting improved performance in long-only equity products.

▪ Technology services revenue increased $40 million from the second quarter of 2017 and $14 million from the first quarter of 2018, reflecting ongoing demand for institutional Aladdin^®.

8

SUMMARY OF OPERATING EXPENSE

	Three									Three					Six
	Months Ended									Months Ended					Months Ended
	June 30,									March 31,					June 30,
(in millions), (unaudited)	2018			2017*			Change			2018		Change			2018		2017*			Change
Operating expense
Employee compensation and benefits	$	1,082		$	998		$	84		$	1,121	$	(39	)	$	2,203	$	2,019		$	184
Distribution and servicing costs:
Retrocessions		181			160			21			192		(11	)		373		315			58
12b-1 costs		101			119			(18	)		106		(5	)		207		238			(31	)
Other		133			131			2			134		(1	)		267		258			9
Total distribution and servicing costs		415			410			5			432		(17	)		847		811			36
Direct fund expense		264			221			43			261		3			525		427			98
General and administration:
Marketing and promotional		91			86			5			85		6			176		155			21
Occupancy and office related		73			69			4			74		(1	)		147		134			13
Portfolio services		73			58			15			70		3			143		115			28
Technology		58			51			7			53		5			111		94			17
Professional services		37			30			7			32		5			69		55			14
Communications		9			8			1			10		(1	)		19		16			3
Foreign exchange remeasurement		4			5			(1	)		1		3			5		(6	)		11
Contingent consideration fair value adjustments		(1	)		(4	)		3			6		(7	)		5		(8	)		13
Product launch costs		-			-			-			11		(11	)		11		4			7
Other general and administration		49			42			7			41		8			90		82			8
Total general and administration expense		393			345			48			383		10			776		641			135
Amortization of intangible assets		11			25			(14	)		11		-			22		50			(28	)
Total operating expense	$	2,165		$	1,999		$	166		$	2,208	$	(43	)	$	4,373	$	3,948		$	425

* Results for 2017 were recast to reflect the adoption of the new revenue recognition standard. For further information, refer to the Current Report on Form 8-K furnished on March 22, 2018.

Highlights

▪ Employee compensation and benefits expense increased $84 million from the second quarter of 2017, primarily reflecting higher incentive compensation, driven primarily by higher operating income and headcount.

Employee compensation and benefits expense decreased $39 million from the first quarter of 2018, primarily reflecting lower seasonal payroll taxes in the current quarter.

▪ Direct fund expense increased $43 million from the second quarter of 2017, reflecting higher average AUM.  

9

INCOME TAX EXPENSE (BENEFIT)

	Three									Three							Six
	Months Ended									Months Ended							Months Ended
	June 30,									March 31,							June 30,
(in millions), (unaudited)	2018			2017*			Change			2018				Change			2018			2017*			Change
Income tax expense (benefit)	$	338		$	374		$	(36	)		$	265		$	73		$	603		$	642		$	(39	)
Effective tax rate		24.0	%		30.5	%		(650	) bps			19.6	%		440	bps		21.8	%		27.3	%		(550	) bps

* Results for 2017 were recast to reflect the adoption of the new revenue recognition standard. For further information, refer to the Current Report on Form 8-K furnished on March 22, 2018.

Highlights

▪ Second quarter 2018 income tax expense reflected a reduced tax rate associated with the Tax Cuts and Jobs Act (the “2017 Act”) enacted in the United States.

▪ First quarter 2018 income tax expense reflected a reduced tax rate associated with the 2017 Act and included a discrete tax benefit of $56 million related to stock-based compensation awards that vested.

SUMMARY AND RECONCILIATION OF U.S. GAAP NONOPERATING INCOME (EXPENSE) TO NONOPERATING INCOME (EXPENSE), AS ADJUSTED

	Three Months									Three Months						Six Months
	Ended									Ended						Ended
	June 30,									March 31,						June 30,
(in millions), (unaudited)	2018			2017			Change			2018			Change			2018			2017			Change
Nonoperating income (expense), GAAP basis	$	(24	)	$	1		$	(25	)	$	(16	)	$	(8	)	$	(40	)	$	(6	)	$	(34	)
Less: Net income (loss) attributable to      noncontrolling interests ("NCI")		5			10			(5	)		5			-			10			19			(9	)
Nonoperating income (expense), as adjusted(1)(2)	$	(29	)	$	(9	)	$	(20	)	$	(21	)	$	(8	)	$	(50	)	$	(25	)	$	(25	)
	Three Months									Three Months						Six Months
	Ended									Ended						Ended
	June 30,									March 31,						June 30,
(in millions), (unaudited)	2018			2017			Change			2018			Change			2018			2017			Change
Net gain (loss) on investments(1)(2)
Private equity	$	5		$	8		$	(3	)	$	1		$	4		$	6		$	14		$	(8	)
Real assets		9			-			9			5			4			14			1			13
Other alternatives(3)		1			9			(8	)		3			(2	)		4			23			(19	)
Other investments(4)		(18	)		4			(22	)		1			(19	)		(17	)		25			(42	)
Subtotal		(3	)		21			(24	)		10			(13	)		7			63			(56	)
Other gains		1			5			(4	)		-			1			1			5			(4	)
Total net gain (loss) on investments(1)(2)		(2	)		26			(28	)		10			(12	)		8			68			(60	)
Interest and dividend income		19			13			6			15			4			34			20			14
Interest expense		(46	)		(48	)		2			(46	)		-			(92	)		(113	)		21
Net interest expense		(27	)		(35	)		8			(31	)		4			(58	)		(93	)		35
Nonoperating income (expense), as adjusted(1)(2)	$	(29	)	$	(9	)	$	(20	)	$	(21	)	$	(8	)	$	(50	)	$	(25	)	$	(25	)

⁽¹⁾ Net of net income (loss) attributable to NCI.  

⁽²⁾ Management believes nonoperating income (expense), as adjusted, is an effective measure for reviewing BlackRock’s nonoperating contribution to results. For more information on other as adjusted items and the reconciliation to GAAP see notes (1) through (3) to the condensed consolidated statements of income and supplemental information on pages 11 and 12.

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

⁽⁴⁾ Amounts primarily include net gains (losses) related to equity and fixed income investments.

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RECONCILIATION OF U.S. GAAP OPERATING INCOME AND OPERATING MARGIN TO OPERATING INCOME AND OPERATING MARGIN, AS ADJUSTED
	Three Months Ended									Six Months Ended
	June 30,						March 31,			June 30,
(in millions), (unaudited)	2018			2017*			2018			2018			2017*
Operating income, GAAP basis	$	1,440		$	1,237		$	1,375		$	2,815		$	2,380
Non-GAAP expense adjustment:
PNC LTIP funding obligation		3			4			3			6			8
Operating income, as adjusted		1,443			1,241			1,378			2,821			2,388
Product launch costs and commissions		-			-			12			12			-
Operating income used for operating margin measurement	$	1,443		$	1,241		$	1,390		$	2,833		$	2,388
Revenue, GAAP basis	$	3,605		$	3,236		$	3,583		$	7,188		$	6,328
Non-GAAP adjustment:
Distribution and servicing costs		(415	)		(410	)		(432	)		(847	)		(811	)
Revenue used for operating margin measurement	$	3,190		$	2,826		$	3,151		$	6,341		$	5,517
Operating margin, GAAP basis		39.9	%		38.2	%		38.4	%		39.2	%		37.6	%
Operating margin, as adjusted		45.2	%		43.9	%		44.1	%		44.7	%		43.3	%
See note (1) to the condensed consolidated statements of income and supplemental information on page 12 for more information on as adjusted items and the reconciliation to GAAP.
*      Results for 2017 were recast to reflect the adoption of the new revenue recognition standard. For further information, refer to the Current Report on Form       8-K furnished on March 22, 2018.
RECONCILIATION OF U.S. GAAP NET INCOME ATTRIBUTABLE TO BLACKROCK TO NET INCOME ATTRIBUTABLE TO BLACKROCK, AS ADJUSTED
	Three Months Ended									Six Months Ended
	June 30,						March 31,			June 30,
(in millions, except per share data), (unaudited)	2018			2017*			2018			2018			2017*
Net income attributable to BlackRock, Inc., GAAP basis	$	1,073		$	854		$	1,089		$	2,162		$	1,713
Non-GAAP adjustments:
PNC LTIP funding obligation, net of tax		3			3			3			6			6
Income tax matters		4			-			-			4			-
Net income attributable to BlackRock, Inc., as adjusted (2)	$	1,080		$	857		$	1,092		$	2,172		$	1,719
Diluted weighted-average common shares outstanding (3)		162.2			164.1			162.9			162.5			164.5
Diluted earnings per common share, GAAP basis (3)	$	6.62		$	5.20		$	6.68		$	13.30		$	10.41
Diluted earnings per common share, as adjusted (2) (3)	$	6.66		$	5.22		$	6.70		$	13.36		$	10.45
See notes (2) and (3) to the condensed consolidated statements of income and supplemental information on page 12 for more information on as adjusted items and the reconciliation to GAAP.
*      Results for 2017 were recast to reflect the adoption of the new revenue recognition standard. For further information, refer to the Current Report on Form       8-K furnished on March 22, 2018.

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 considers them to be helpful, for both management and investors, in evaluating 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. Non-GAAP measures may not be comparable to other similarly titled measures of other companies.

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.

11

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. 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.

▪ 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 third parties. Management believes such costs represent a benchmark for the amount of revenue passed through to external parties who distribute the Company’s products. BlackRock excludes from revenue used for operating margin, as adjusted, the costs related to distribution and servicing costs as a proxy for such offsetting revenue.

(2) 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.

For each period presented, the non-GAAP adjustment related to the 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, Inc., as adjusted divided by diluted weighted average common shares outstanding.

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

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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.

BlackRock has previously disclosed risk factors in its Securities and Exchange Commission (“SEC”) reports. These risk factors and those identified elsewhere in this earnings release, among others, could cause actual results to differ materially from forward-looking statements or historical performance and include: (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 potential for human error in connection with BlackRock’s operational systems; (10) the impact of legislative and regulatory actions and reforms and regulatory, supervisory or enforcement actions of government agencies relating to BlackRock or PNC; (11) changes in law and policy and uncertainty pending any such changes; (12) 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; (13) the ability to attract and retain highly talented professionals; (14) fluctuations in the carrying value of BlackRock’s economic investments; (15) 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; (16) BlackRock’s success in negotiating distribution arrangements and maintaining distribution channels for its products; (17) the failure by a key vendor of BlackRock to fulfill its obligations to the Company; (18) any disruption to the operations of third parties whose functions are integral to BlackRock’s exchange-traded funds platform; (19) 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 (20) 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 June 30, 2018 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 May 31, 2018. The performance data does not include accounts terminated prior to June 30, 2018 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 June 30, 2018 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.

Performance shown is derived from applicable benchmarks or peer median information, as selected by BlackRock, Inc. Peer medians are based in part on data either from Lipper, Inc. or Morningstar, Inc. for each included product.

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EX-99.2

Q2 2018 Earnings Earnings Release Supplement July 16, 2018 7/13/2017 10:27 AM BlackRock Exhibit 99.2

A broadly diversified business across clients, products and geographies Assets Under Management of $6.3 trillion at June 30, 2018 Q2 2018 Total Base Fees of $2.944 billion Note: Base Fees and AUM by region data is based on client domicile. Equity 53% 51% 62% 32% 28% 48% 64% 65% Institutional Active Americas Fixed income Retail Index EMEA Multi-asset iShares ETFs Alternatives Cash Asia-Pacific 30% 27% 11% 31% 38% 10% 29% 28% 27% 37% 7% 5% 2% 6% 8% Aum Base fees 1 Client Type Style Product Type Region Active Index Cash

Total long-term Retail iShares ETFs Institutional LTM organic asset growth rate (%) LTM organic base fee growth rate (%) 1% 0% (2)% (1)% 1% 3% 6% 7% 11% 15% 13% 16% 21% 19% 19% 15% 0% 0% 2% 2% 3% 3% 2% 2% Note: LTM organic growth rates measure rolling last twelve months data over beginning of period measure. 7% 10% 1% Q2 Q3 Q4 Q1 2015 2016 2017 $(7) $35 $54 $36 $2 $55 $88 $80 $94 $11 $7 $7 $0 ($6) $(2) $(2) $5 $7 $11 $23 $60 $24 $16 $51 $49 $64 $74 $(29) $5 $(13) $12 $(8) $6 $41 $11 $13 3% 3% 4% 5% 7% 7% 7% 6% 4% 2% 3% 1% 2% 5% 5% 7% 7% 4% 2 Long-term net flows ($ in billions)

Profitability ($ in millions, except per share data) For further information and reconciliations between GAAP and as adjusted, see page 9 of this earnings release supplement, notes (1) through (3) in the current earnings release as well as previously filed Form 10-Ks, 10-Qs and 8-Ks. Operating Income, as adjusted Operating Margin, as adjusted Net Income, as adjusted EPS, as adjusted Operating Income and Margin, as adjusted Net Income and EPS, as adjusted 3 Results for 2017 and 2016 were recast to reflect the adoption of the new revenue recognition standard. For further information, refer to the Current Report on Form 8-K furnished on March 22, 2018.

Dividends per share Capital management (amounts in millions, except per share data) Amounts above exclude repurchases of employee tax withholdings related to employee stock transactions. Share repurchases and weighted average diluted shares Share repurchases Weighted average diluted shares Dividends 4

Major market indices and exchange rates Source: Bloomberg (1) Revenue weighted composite index calculated by BlackRock to approximate the impact of market fluctuations on BlackRock’s equity base fees. The index is derived from publicly available market indices that represent applicable AUM benchmarks for each equity portfolio, as selected by BlackRock. The market impact information for each equity portfolio used to calculate the index may be substantially different from that shown. Index does not include portfolios that do not have an applicable market index. Index does not reflect BlackRock’s investment performance, and is not indicative of past or future results. 5

Quarterly revenue ($ in millions) $369 $22 Percentage Change Year-over-Year Sequential Base fees ex. SL 10% (1)% Securities lending 17% 18% Performance fees 90% 30% Technology services revenue 25% 8% Distribution fees 1% (5)% Advisory and other revenue 10% 10% Total 11% 1% Results for 2017 were recast to reflect the adoption of the new revenue recognition standard. For further information, refer to the Current Report on Form 8-K furnished on March 22, 2018. Q2 2018 compared to Q2 2017 Q2 2018 compared to Q1 2018 6

Quarterly investment advisory, administration fees and securities lending revenue ($ in millions) Results for 2017 were recast to reflect the adoption of the new revenue recognition standard. For further information, refer to the Current Report on Form 8-K furnished on March 22, 2018. $277 $(3) Q2 2018 compared to Q2 2017 Q2 2018 compared to Q1 2018 7

Quarterly expense, as adjusted ($ in millions) Quarterly expense, as adjusted, includes non-GAAP adjustments related to PNC LTIP funding obligation of $3 million in the second quarter of 2018, $4 million in the second quarter of 2017 and $3 million in the first quarter of 2018. For further information, see notes (1) through (3) in the current earnings release. $167 $(43) Q2 2018 compared to Q2 2017 Q2 2018 compared to Q1 2018 Percentage change Year-over-Year Sequential Employee comp. & benefits 9% (3)% Distribution & servicing costs 1% (4)% Direct fund expense 19% 1% General & administration 14% 3% Amortization of intangible assets (56)% -% Total 8% (2)% 8 Results for 2017 were recast to reflect the adoption of the new revenue recognition standard. For further information, refer to the Current Report on Form 8-K furnished on March 22, 2018..

Reconciliation between GAAP and as adjusted ($ in millions) Non-GAAP adjustments include amounts related to PNC LTIP funding obligations and noncash income tax matters, as applicable. The fourth quarter of 2017 also includes a non-GAAP adjustment of $1.3 billion related to the Tax Cuts and Jobs Act. For further information and reconciliation between GAAP and as adjusted, see notes (1) through (3) in the current earnings release as well as previously filed Form 10-Ks, 10-Qs and 8-Ks. Results for 2017 and 2016 were recast to reflect the adoption of the new revenue recognition standard. For further information, refer to the Current Report on Form 8-K furnished on March 22, 2018. 9

Important Notes This presentation, 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. BlackRock has previously disclosed risk factors in its Securities and Exchange Commission (“SEC”) reports. These risk factors and those identified elsewhere in this earnings release, among others, could cause actual results to differ materially from forward-looking statements or historical performance and include: (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 potential for human error in connection with BlackRock’s operational systems; (10) the impact of legislative and regulatory actions and reforms and regulatory, supervisory or enforcement actions of government agencies relating to BlackRock or PNC; (11) changes in law and policy and uncertainty pending any such changes; (12) 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; (13) the ability to attract and retain highly talented professionals; (14) fluctuations in the carrying value of BlackRock’s economic investments; (15) 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; (16) BlackRock’s success in negotiating distribution arrangements and maintaining distribution channels for its products; (17) the failure by a key vendor of BlackRock to fulfill its obligations to the Company; (18) any disruption to the operations of third parties whose functions are integral to BlackRock’s exchange-traded funds platform; (19) 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 (20) 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 July 16, 2018, and BlackRock’s other periodic reports, which are available on BlackRock’s website at www.blackrock.com. 10