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): January 16, 2019

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 January 16, 2019, BlackRock, Inc. (the “Company”) reported results of operations for the three months and year ended December 31, 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 December 31, 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 January 16, 2019 issued by the Company
99.2	Fourth Quarter 2018 Earnings – Earnings Release Supplement

EXHIBIT INDEX

99.1	Earnings release dated January 16, 2019 issued by the Company
99.2	Fourth 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: January 16, 2019	Senior Managing Director and
	Chief Financial Officer
	Gary S. Shedlin

EX-99.1

Exhibit 99.1

INVESTOR RELATIONS: Samantha Tortora212.810.5397 MEDIARELATIONS: Brian Beades    212.810.5596

New York, January 16, 2019 – BlackRock, Inc. (NYSE: BLK) today reported financial results for the three months and year ended December 31, 2018.

BlackRock Reports Full Year 2018 Diluted EPS of $26.58, or $26.93 as adjusted

Fourth Quarter 2018 Diluted EPS of $5.78, or $6.08 as adjusted

$124 billion of full year total net inflows, led by iShares^®, active multi-asset and illiquid alternatives

Record $81 billion of quarterly iShares inflows reflects market leadership in high-growth ETF sector

4% increase in full year revenue driven by growth inbase fees and technology services revenue, partially offset by lower performance fees

Restructuring charge of$60 million from initiative to modify the size and shape of the workforce excluded from as adjusted results

4% growth in full year operating income (5% as adjusted)

$3.6 billion returned to shareholders in 2018, including

$1.7 billion of full year share repurchases

5% increase in quarterly cash dividend to $3.30 per share approved by Board of Directors

Laurence D. Fink, Chairman and CEO:

“BlackRock’s scale and strategic positioning allowed us to deliver organic growth, revenue growth, and operating leverage in 2018, while simultaneously investing in our highest growth opportunities and returning $3.6 billion in capital to shareholders. The benefits of the investments we have made to build the most diversified global asset management and technology services firm in the world are clearer today than at any point in our history.

“BlackRock generated total net inflows of $124 billion in 2018. This included $50 billion of fourth quarter net inflows and record quarters for iShares and illiquid alternative strategies. Technology services revenue grew 19% in 2018, driven by strong demand for Aladdin and our digital wealth technologies. Our results reflect continued growth in these key initiatives and the resilience of our platform.

“BlackRock is well positioned to deliver the holistic portfolio solutions, technology services and strategic counsel that clients increasingly are seeking, especially in the face of meaningful headwinds for the asset management industry. We will continue to invest in our platform to ensure BlackRock is even better positioned to serve clients and consistently deliver long-term value to shareholders in the years ahead.”

FINANCIAL RESULTS  

(in millions,	Q4			Q4			Full Year
except per share data)	2018			2017*			2018			2017*
AUM	$	5,975,818		$	6,288,195		$	5,975,818		$	6,288,195
% change		(5	)%					(5	)%
Total net flows	$	49,773		$	102,929		$	123,629		$	367,254
GAAP basis:
Revenue	$	3,434		$	3,764		$	14,198		$	13,600
% change		(9	)%					4	%
Operating income	$	1,246		$	1,485		$	5,457		$	5,254
% change		(16	)%					4	%
Operating margin		36.3	%		39.5	%		38.4	%		38.6	%
Net income(1) (2)	$	927		$	2,295		$	4,305		$	4,952
% change		(60	)%					(13	)%
Diluted EPS	$	5.78		$	14.01		$	26.58		$	30.12
% change		(59	)%					(12	)%
Weighted average    diluted shares		160.5			163.8			161.9			164.4
% change		(2	)%					(2	)%
As Adjusted:
Operating income(3)	$	1,310		$	1,488		$	5,531		$	5,269
% change		(12	)%					5	%
Operating margin(3)		43.5	%		44.7	%		44.3	%		44.1	%
Net income(2) (3)	$	975		$	1,013		$	4,361		$	3,698
% change		(4	)%					18	%
Diluted EPS(3)	$	6.08		$	6.19		$	26.93		$	22.49
% change		(2	)%					20	%

^* 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⁾ GAAP net income for fourth quarter 2017 reflected $1.2 billion of net tax benefit related to the Tax Cuts and Jobs Act.

⁽²⁾ Net income represents net income attributable to BlackRock, Inc.

⁽³⁾ See notes (1) through (3) to the condensed consolidated statements of income and supplemental information on pages 10 and 11 for more information on as adjusted items and the reconciliation to GAAP.

NET FLOW HIGHLIGHTS

			Q4			Full Year
(in billions)			2018			2018
Long-term net flows:			$	43.6		$	123.3
By region:
	Americas:			60.5			156.9
	EMEA:			(0.4	)		(23.3	)
	APAC:			(16.5	)		(10.3	)
By client type:
	Retail:		$	(3.2	)	$	20.7
		U.S.:		6.5			25.9
		International:		(9.7	)		(5.2	)
	iShares:		$	81.4		$	167.5
		Core:		33.2			106.2
		Non-Core:		48.2			61.3
	Institutional:		$	(34.6	)	$	(64.9	)
		Index:		(27.0	)		(53.7	)
		Active:		(7.6	)		(11.2	)
Cash management net flows:			$	6.1		$	0.0

1

BUSINESS RESULTS

								December 31, 2018			Q4 2018
	Q4 2018			December 31, 2018		Q4 2018		AUM			Base fees(1)
(in millions), (unaudited)	Net flows			AUM		Base fees(1)		% of Total			% of Total
RESULTS BY CLIENT TYPE
Retail	$	(3,178	)	$	610,850	$	840		10	%		30	%
iShares ETFs		81,402			1,731,425		1,054		29	%		38	%
Institutional:
Active		(7,568	)		1,079,979		502		18	%		18	%
Index		(27,064	)		2,103,230		238		35	%		9	%
Total institutional		(34,632	)		3,183,209		740		53	%		27	%
Long-term		43,592			5,525,484		2,634		92	%		95	%
Cash management		6,146			448,565		145		8	%		5	%
Advisory		35			1,769		-		-			-
Total	$	49,773		$	5,975,818	$	2,779		100	%		100	%
RESULTS BY INVESTMENT STYLE
Active	$	(12,283	)	$	1,617,780	$	1,328		27	%		48	%
Index and iShares ETFs		55,875			3,907,704		1,306		65	%		47	%
Long-term		43,592			5,525,484		2,634		92	%		95	%
Cash management		6,146			448,565		145		8	%		5	%
Advisory		35			1,769		-		-			-
Total	$	49,773		$	5,975,818	$	2,779		100	%		100	%
RESULTS BY PRODUCT TYPE
Equity	$	28,292		$	3,035,825	$	1,365		50	%		49	%
Fixed income		3,100			1,884,417		766		32	%		28	%
Multi-asset		7,297			461,884		287		8	%		10	%
Alternatives		4,903			143,358		216		2	%		8	%
Long-term		43,592			5,525,484		2,634		92	%		95	%
Cash management		6,146			448,565		145		8	%		5	%
Advisory		35			1,769		-		-			-
Total	$	49,773		$	5,975,818	$	2,779		100	%		100	%

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

INVESTMENT PERFORMANCE AT DECEMBER 31, 2018⁽¹⁾

	One-year period	Three-year period	Five-year period
Fixed income:
Actively managed AUM above benchmark or peer median
Taxable	48%	69%	82%
Tax-exempt	47%	71%	76%
Index AUM within or above applicable tolerance	98%	99%	98%
Equity:
Actively managed AUM above benchmark or peer median
Fundamental	50%	67%	78%
Systematic	32%	83%	93%
Index AUM within or above applicable tolerance	97%	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 12 for performance disclosure detail.

CAPITAL MANAGEMENT

BlackRock’s Board of Directors approved a 5% increase in the quarterly cash dividend to $3.30 per share, payable March 21, 2019, to shareholders of record at the close of business on March 6, 2019.

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 Wednesday, January 16, 2019 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 7965387). 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 3:30 p.m. (Eastern Time) on Wednesday, January 16, 2019 and ending at midnight on Wednesday, January 30, 2019. 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 7965387. 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 December 31, 2018, the firm managed approximately $5.98 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
	December 31,									September 30,
	2018			2017*			Change			2018			Change
Revenue
Investment advisory, administration fees and   securities lending revenue	$	2,779		$	2,897		$	(118	)	$	2,883		$	(104	)
Investment advisory performance fees		100			285			(185	)		151			(51	)
Technology services revenue		203			176			27			200			3
Distribution fees		271			306			(35	)		279			(8	)
Advisory and other revenue		81			100			(19	)		63			18
Total revenue		3,434			3,764			(330	)		3,576			(142	)
Expense
Employee compensation and benefits		1,020			1,147			(127	)		1,097			(77	)
Distribution and servicing costs		420			433			(13	)		408			12
Direct fund expense		224			237			(13	)		249			(25	)
General and administration		449			450			(1	)		413			36
Restructuring charge		60			-			60			-			60
Amortization of intangible assets		15			12			3			13			2
Total expense		2,188			2,279			(91	)		2,180			8
Operating income		1,246			1,485			(239	)		1,396			(150	)
Nonoperating income (expense)
Net gain (loss) on investments		(67	)		33			(100	)		50			(117	)
Interest and dividend income		41			14			27			29			12
Interest expense		(46	)		(46	)		-			(46	)		-
Total nonoperating income (expense)		(72	)		1			(73	)		33			(105	)
Income before income taxes		1,174			1,486			(312	)		1,429			(255	)
Income tax expense (benefit)		247			(815	)		1,062			226			21
Net income		927			2,301			(1,374	)		1,203			(276	)
Less:
Net income (loss) attributable to noncontrolling   interests		-			6			(6	)		(13	)		13
Net income attributable to BlackRock, Inc.	$	927		$	2,295		$	(1,368	)	$	1,216		$	(289	)
Weighted-average common shares outstanding
Basic		158,859,998			161,272,950			(2,412,952	)		160,141,506			(1,281,508	)
Diluted		160,450,266			163,777,534			(3,327,268	)		161,378,217			(927,951	)
Earnings per share attributable to BlackRock, Inc.    common stockholders (3)
Basic	$	5.84		$	14.23		$	(8.39	)	$	7.59		$	(1.75	)
Diluted	$	5.78		$	14.01		$	(8.23	)	$	7.54		$	(1.76	)
Cash dividends declared and paid per share	$	3.13		$	2.50		$	0.63		$	3.13		$	-
Supplemental information:
AUM (end of period)	$	5,975,818		$	6,288,195		$	(312,377	)	$	6,444,100		$	(468,282	)
Shares outstanding (end of period)		158,520,147			161,046,825			(2,526,678	)		159,804,364			(1,284,217	)
GAAP:
Operating margin		36.3	%		39.5	%		(320	) bps		39.0	%		(270	) bps
Effective tax rate		21.0	%		(55.1	)%		7,610	bps		15.7	%		530	bps
As adjusted:
Operating income (1)	$	1,310		$	1,488		$	(178	)	$	1,400		$	(90	)
Operating margin (1)		43.5	%		44.7	%		(120	) bps		44.2	%		(70	) bps
Nonoperating income (expense), less net income      (loss) attributable to noncontrolling interests	$	(72	)	$	(5	)	$	(67	)	$	46		$	(118	)
Net income attributable to BlackRock, Inc. (2)	$	975		$	1,013		$	(38	)	$	1,214		$	(239	)
Diluted earnings attributable to BlackRock, Inc.      common stockholders per share (2) (3)	$	6.08		$	6.19		$	(0.11	)	$	7.52		$	(1.44	)
Effective tax rate		21.2	%		31.7	%		(1,050	) bps		16.0	%		520	bps

See pages 10-11 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)

	Year Ended
	December 31,
	2018			2017*			Change
Revenue
Investment advisory, administration fees and securities       lending revenue	$	11,553		$	10,868		$	685
Investment advisory performance fees		412			594			(182	)
Technology services revenue		785			657			128
Distribution fees		1,155			1,183			(28	)
Advisory and other revenue		293			298			(5	)
Total revenue		14,198			13,600			598
Expense
Employee compensation and benefits		4,320			4,253			67
Distribution and servicing costs		1,675			1,663			12
Direct fund expense		998			895			103
General and administration		1,638			1,446			192
Restructuring charge		60			-			60
Amortization of intangible assets		50			89			(39	)
Total expense		8,741			8,346			395
Operating income		5,457			5,254			203
Nonoperating income (expense)
Net gain (loss) on investments		1			161			(160	)
Interest and dividend income		104			49			55
Interest expense		(184	)		(205	)		21
Total nonoperating income (expense)		(79	)		5			(84	)
Income before income taxes		5,378			5,259			119
Income tax expense		1,076			270			806
Net income		4,302			4,989			(687	)
Less:
Net income (loss) attributable to noncontrolling interests		(3	)		37			(40	)
Net income attributable to BlackRock, Inc.	$	4,305		$	4,952		$	(647	)
Weighted-average common shares outstanding
Basic		160,301,116			162,160,601			(1,859,485	)
Diluted		161,948,732			164,415,035			(2,466,303	)
Earnings per share attributable to BlackRock, Inc.    common stockholders (3)
Basic	$	26.86		$	30.54		$	(3.68	)
Diluted	$	26.58		$	30.12		$	(3.54	)
Cash dividends declared and paid per share	$	12.02		$	10.00		$	2.02
Supplemental information:
AUM (end of period)	$	5,975,818		$	6,288,195		$	(312,377	)
Shares outstanding (end of period)		158,520,147			161,046,825			(2,526,678	)
GAAP:
Operating margin		38.4	%		38.6	%		(20	) bps
Effective tax rate		20.0	%		5.2	%		1,480	bps
As adjusted:
Operating income (1)	$	5,531		$	5,269		$	262
Operating margin (1)		44.3	%		44.1	%		20	bps
Nonoperating income (expense), less net income (loss)      attributable to noncontrolling interests	$	(76	)	$	(32	)	$	(44	)
Net income attributable to BlackRock, Inc. (2)	$	4,361		$	3,698		$	663
Diluted earnings attributable to BlackRock, Inc.      common stockholders per share (2) (3)	$	26.93		$	22.49		$	4.44
Effective tax rate		20.0	%		29.4	%		(940	) bps

See pages 10-11 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
	September 30,		inflows			Market						December 31,
	2018		(outflows)			change			FX impact (1)			2018		Average AUM (2)
Retail:
Equity	$	237,544	$	2,295		$	(32,766	)	$	(1,359	)	$	205,714	$	220,909
Fixed income		282,879		(7,877	)		(1,947	)		(1,467	)		271,588		276,755
Multi-asset		124,304		170			(10,701	)		(356	)		113,417		119,109
Alternatives		18,534		2,234			(575	)		(62	)		20,131		19,045
Retail subtotal		663,261		(3,178	)		(45,989	)		(3,244	)		610,850		635,818
iShares ETFs:
Equity		1,413,925		60,509			(196,608	)		(3,564	)		1,274,262		1,339,103
Fixed income		412,343		18,858			(1,939	)		(1,666	)		427,596		413,580
Multi-asset		3,814		988			(312	)		(5	)		4,485		3,950
Alternatives		23,106		1,047			960			(31	)		25,082		23,717
iShares ETFs subtotal		1,853,188		81,402			(197,899	)		(5,266	)		1,731,425		1,780,350
Institutional:
Active:
Equity		128,975		(1,641	)		(15,655	)		(703	)		110,976		119,411
Fixed income		551,591		(13,315	)		2,189			(1,504	)		538,961		543,033
Multi-asset		356,887		5,675			(23,444	)		(2,881	)		336,237		347,598
Alternatives		93,468		1,713			(953	)		(423	)		93,805		93,594
Active subtotal		1,130,921		(7,568	)		(37,863	)		(5,511	)		1,079,979		1,103,636
Index:
Equity		1,702,243		(32,871	)		(220,536	)		(3,963	)		1,444,873		1,572,931
Fixed income		636,993		5,434			10,142			(6,297	)		646,272		635,009
Multi-asset		7,805		464			(619	)		95			7,745		7,787
Alternatives		4,744		(91	)		(296	)		(17	)		4,340		4,548
Index subtotal		2,351,785		(27,064	)		(211,309	)		(10,182	)		2,103,230		2,220,275
Institutional subtotal		3,482,706		(34,632	)		(249,172	)		(15,693	)		3,183,209		3,323,911
Long-term		5,999,155		43,592			(493,060	)		(24,203	)		5,525,484		5,740,079
Cash management		443,185		6,146			550			(1,316	)		448,565		445,872
Advisory (3)		1,760		35			7			(33	)		1,769		1,762
Total	$	6,444,100	$	49,773		$	(492,503	)	$	(25,552	)	$	5,975,818	$	6,187,713
Current Quarter Component Changes by Investment Style and Product Type (Long-term)
			Net
	September 30,		inflows			Market						December 31,
	2018		(outflows)			change			FX impact (1)			2018		Average AUM (2)
Active:
Equity	$	301,049	$	(1,312	)	$	(40,089	)	$	(1,443	)	$	258,205	$	278,269
Fixed income		819,332		(20,763	)		116			(2,700	)		795,985		804,945
Multi-asset		481,192		5,845			(34,146	)		(3,237	)		449,654		466,707
Alternatives		112,003		3,947			(1,529	)		(485	)		113,936		112,639
Active subtotal		1,713,576		(12,283	)		(75,648	)		(7,865	)		1,617,780		1,662,560
Index and iShares ETFs:
iShares ETFs:
Equity		1,413,925		60,509			(196,608	)		(3,564	)		1,274,262		1,339,103
Fixed income		412,343		18,858			(1,939	)		(1,666	)		427,596		413,580
Multi-asset		3,814		988			(312	)		(5	)		4,485		3,950
Alternatives		23,106		1,047			960			(31	)		25,082		23,717
iShares ETFs subtotal		1,853,188		81,402			(197,899	)		(5,266	)		1,731,425		1,780,350
Non-ETF Index:
Equity		1,767,713		(30,905	)		(228,868	)		(4,582	)		1,503,358		1,634,982
Fixed income		652,131		5,005			10,268			(6,568	)		660,836		649,852
Multi-asset		7,804		464			(618	)		95			7,745		7,787
Alternatives		4,743		(91	)		(295	)		(17	)		4,340		4,548
Non-ETF Index subtotal		2,432,391		(25,527	)		(219,513	)		(11,072	)		2,176,279		2,297,169
Index & iShares ETFs subtotal		4,285,579		55,875			(417,412	)		(16,338	)		3,907,704		4,077,519
Long-term	$	5,999,155	$	43,592		$	(493,060	)	$	(24,203	)	$	5,525,484	$	5,740,079
Current Quarter Component Changes by Product Type (Long-term)
			Net
	September 30,		inflows			Market						December 31,
	2018		(outflows)			change			FX impact (1)			2018		Average AUM (2)
Equity	$	3,482,687	$	28,292		$	(465,565	)	$	(9,589	)	$	3,035,825	$	3,252,354
Fixed income		1,883,806		3,100			8,445			(10,934	)		1,884,417		1,868,377
Multi-asset		492,810		7,297			(35,076	)		(3,147	)		461,884		478,444
Alternatives:
Core		109,465		4,061			(1,435	)		(546	)		111,545		110,167
Currency and commodities(4)		30,387		842			571			13			31,813		30,737
Alternatives subtotal		139,852		4,903			(864	)		(533	)		143,358		140,904
Long-term	$	5,999,155	$	43,592		$	(493,060	)	$	(24,203	)	$	5,525,484	$	5,740,079

⁽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-over-Year Component Changes by Client Type and Product Type
			Net			Acquisitions
	December 31,		inflows			and			Market						December 31,
	2017		(outflows)			dispositions(1)			change			FX impact (2)			2018		Average AUM (3)
Retail:
Equity	$	233,218	$	2,090		$	2,137		$	(28,005	)	$	(3,726	)	$	205,714	$	231,556
Fixed income		257,571		11,546			14,070			(8,630	)		(2,969	)		271,588		268,818
Multi-asset		120,855		2,914			2,519			(12,107	)		(764	)		113,417		120,907
Alternatives		16,733		4,150			7			(590	)		(169	)		20,131		17,990
Retail subtotal		628,377		20,700			18,733			(49,332	)		(7,628	)		610,850		639,271
iShares ETFs:
Equity		1,329,610		112,817			-			(159,433	)		(8,732	)		1,274,262		1,360,991
Fixed income		395,252		50,930			-			(14,355	)		(4,231	)		427,596		404,236
Multi-asset		3,761		1,050			-			(317	)		(9	)		4,485		3,837
Alternatives		23,616		2,738			-			(1,196	)		(76	)		25,082		24,663
iShares ETFs subtotal		1,752,239		167,535			-			(175,301	)		(13,048	)		1,731,425		1,793,727
Institutional:
Active:
Equity		137,185		(7,895	)		(4,296	)		(11,485	)		(2,533	)		110,976		131,474
Fixed income		570,050		(20,701	)		2,417			(7,301	)		(5,504	)		538,961		554,107
Multi-asset		347,825		11,944			(1,593	)		(14,650	)		(7,289	)		336,237		348,342
Alternatives		84,248		5,448			4,995			444			(1,330	)		93,805		89,217
Active subtotal		1,139,308		(11,204	)		1,523			(32,992	)		(16,656	)		1,079,979		1,123,140
Index:
Equity		1,671,628		(91,845	)		4,749			(122,252	)		(17,407	)		1,444,873		1,648,418
Fixed income		632,592		37,335			2,051			(4,835	)		(20,871	)		646,272		640,733
Multi-asset		7,837		1,005			(243	)		(880	)		26			7,745		8,031
Alternatives		4,750		(199	)		1			(142	)		(70	)		4,340		4,689
Index subtotal		2,316,807		(53,704	)		6,558			(128,109	)		(38,322	)		2,103,230		2,301,871
Institutional subtotal		3,456,115		(64,908	)		8,081			(161,101	)		(54,978	)		3,183,209		3,425,011
Long-term		5,836,731		123,327			26,814			(385,734	)		(75,654	)		5,525,484		5,858,009
Cash management		449,949		(21	)		686			1,593			(3,642	)		448,565		453,883
Advisory (4)		1,515		323			-			5			(74	)		1,769		1,381
Total	$	6,288,195	$	123,629		$	27,500		$	(384,136	)	$	(79,370	)	$	5,975,818	$	6,313,273
Year-over-Year Component Changes by Investment Style and Product Type (Long-term)
			Net			Acquisitions
	December 31,		inflows			and			Market						December 31,
	2017		(outflows)			dispositions(1)			change			FX impact (2)			2018		Average AUM (3)
Active:
Equity	$	311,209	$	(12,439	)	$	(2,160	)	$	(33,819	)	$	(4,586	)	$	258,205	$	300,671
Fixed income		815,135		(12,009	)		16,487			(15,869	)		(7,759	)		795,985		808,997
Multi-asset		468,679		14,858			926			(26,757	)		(8,052	)		449,654		469,249
Alternatives		100,982		9,598			5,002			(146	)		(1,500	)		113,936		107,206
Active subtotal		1,696,005		8			20,255			(76,591	)		(21,897	)		1,617,780		1,686,123
Index and iShares ETFs:
iShares ETFs
Equity		1,329,610		112,817			-			(159,433	)		(8,732	)		1,274,262		1,360,991
Fixed income		395,252		50,930			-			(14,355	)		(4,231	)		427,596		404,236
Multi-asset		3,761		1,050			-			(317	)		(9	)		4,485		3,837
Alternatives		23,616		2,738			-			(1,196	)		(76	)		25,082		24,663
iShares ETFs subtotal		1,752,239		167,535			-			(175,301	)		(13,048	)		1,731,425		1,793,727
Non-ETF Index
Equity		1,730,822		(85,211	)		4,750			(127,923	)		(19,080	)		1,503,358		1,710,777
Fixed income		645,078		40,189			2,051			(4,897	)		(21,585	)		660,836		654,661
Multi-asset		7,838		1,005			(243	)		(880	)		25			7,745		8,031
Alternatives		4,749		(199	)		1			(142	)		(69	)		4,340		4,690
Non-ETF Index subtotal		2,388,487		(44,216	)		6,559			(133,842	)		(40,709	)		2,176,279		2,378,159
Index & iShares ETFs subtotal		4,140,726		123,319			6,559			(309,143	)		(53,757	)		3,907,704		4,171,886
Long-term	$	5,836,731	$	123,327		$	26,814		$	(385,734	)	$	(75,654	)	$	5,525,484	$	5,858,009
Year-over-Year Component Changes by Product Type (Long-term)
			Net			Acquisitions
	December 31,		inflows			and			Market						December 31,
	2017		(outflows)			dispositions(1)			change			FX impact (2)			2018		Average AUM (3)
Equity	$	3,371,641	$	15,167		$	2,590		$	(321,175	)	$	(32,398	)	$	3,035,825	$	3,372,439
Fixed income		1,855,465		79,110			18,538			(35,121	)		(33,575	)		1,884,417		1,867,894
Multi-asset		480,278		16,913			683			(27,954	)		(8,036	)		461,884		481,117
Alternatives:
Core		98,533		9,590			4,995			(29	)		(1,544	)		111,545		104,652
Currency and commodities(5)		30,814		2,547			8			(1,455	)		(101	)		31,813		31,907
Alternatives subtotal		129,347		12,137			5,003			(1,484	)		(1,645	)		143,358		136,559
Long-term	$	5,836,731	$	123,327		$	26,814		$	(385,734	)	$	(75,654	)	$	5,525,484	$	5,858,009

⁽¹⁾ Amounts include net AUM from the acquisitions of Tennenbaum Capital Partners in August 2018 (“TCP Transaction”) and the asset management business of Citibanamex in September 2018 (“Citibanamex Transaction”), AUM reclassifications and net dispositions related to the transfer of BlackRock’s UK Defined Contribution Administration and Platform business to Aegon N.V. in July 2018, and net AUM dispositions related to the sale of BlackRock’s minority interest in DSP BlackRock Investment Managers Pvt. Ltd. to The DSP Group in August 2018 (“DSP Transaction”).

⁽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 ETFs.

6

SUMMARY OF REVENUE

								Three Months
	Three Months Ended							Ended					Year Ended
	December 31,							September 30,					December 31,
(in millions), (unaudited)	2018		2017*		Change			2018		Change			2018		2017*		Change
Investment advisory, administration fees    and securities lending revenue:
Equity:
Active	$	385	$	425	$	(40	)	$	405	$	(20	)	$	1,654	$	1,654	$	-
iShares ETFs		827		888		(61	)		885		(58	)		3,549		3,220		329
Non-ETF Index		153		177		(24	)		169		(16	)		685		680		5
Equity subtotal		1,365		1,490		(125	)		1,459		(94	)		5,888		5,554		334
Fixed income:
Active		466		449		17			460		6			1,840		1,717		123
iShares ETFs		205		213		(8	)		205		-			825		808		17
Non-ETF Index		95		87		8			98		(3	)		387		344		43
Fixed income subtotal		766		749		17			763		3			3,052		2,869		183
Multi-asset		287		314		(27	)		298		(11	)		1,176		1,157		19
Alternatives:
Core		193		170		23			185		8			732		639		93
Currency and commodities		23		24		(1	)		24		(1	)		98		91		7
Alternatives subtotal		216		194		22			209		7			830		730		100
Long-term		2,634		2,747		(113	)		2,729		(95	)		10,946		10,310		636
Cash management		145		150		(5	)		154		(9	)		607		558		49
Total base fees		2,779		2,897		(118	)		2,883		(104	)		11,553		10,868		685
Investment advisory performance fees:
Equity		23		95		(72	)		7		16			91		152		(61	)
Fixed income		6		14		(8	)		-		6			8		34		(26	)
Multi-asset		4		19		(15	)		1		3			19		33		(14	)
Alternatives		67		157		(90	)		143		(76	)		294		375		(81	)
Total performance fees		100		285		(185	)		151		(51	)		412		594		(182	)
Technology services revenue		203		176		27			200		3			785		657		128
Distribution fees:
Retrocessions		168		185		(17	)		168		-			709		675		34
12b-1 fees (U.S. mutual funds distribution fees)		93		110		(17	)		102		(9	)		406		466		(60	)
Other		10		11		(1	)		9		1			40		42		(2	)
Total distribution fees		271		306		(35	)		279		(8	)		1,155		1,183		(28	)
Advisory and other revenue:
Advisory		33		54		(21	)		26		7			113		128		(15	)
Other		48		46		2			37		11			180		170		10
Total advisory and other revenue		81		100		(19	)		63		18			293		298		(5	)
Total revenue	$	3,434	$	3,764	$	(330	)	$	3,576	$	(142	)	$	14,198	$	13,600	$	598

* 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 decreased $118 million from the fourth quarter of 2017 and $104 million from the third quarter of 2018, despite the positive impact of organic growth and AUM acquired in the TCP and Citibanamex transactions. The decrease was driven by the impact of lower markets, previously announced pricing changes to select investment products and lower borrowing demand for securities lending in the current environment. Securities lending revenue of $129 million in the current quarter compared with $150 million in the fourth quarter of 2017 and $160 million in the third quarter of 2018.

▪ Performance fees decreased $185 million from the fourth quarter of 2017, reflecting lower revenue from liquid alternative and long-only products and decreased $51 million from the third quarter of 2018, primarily due to strong performance from a single hedge fund with an annual performance measurement period that ends in the third quarter.

▪ Technology services revenue increased $27 million from the fourth quarter of 2017 and $3 million from the third quarter of 2018, primarily reflecting higher revenue from institutional Aladdin^®.

7

SUMMARY OF OPERATING EXPENSE

	Three							Three
	Months Ended							Months Ended					Year Ended
	December 31,							September 30,					December 31,
(in millions), (unaudited)	2018		2017*		Change			2018		Change			2018		2017*		Change
Operating expense
Employee compensation and benefits	$	1,020	$	1,147	$	(127	)	$	1,097	$	(77	)	$	4,320	$	4,253	$	67
Distribution and servicing costs:
Retrocessions		168		185		(17	)		168		-			709		675		34
12b-1 costs		92		106		(14	)		100		(8	)		399		455		(56	)
Other		160		142		18			140		20			567		533		34
Total distribution and servicing costs		420		433		(13	)		408		12			1,675		1,663		12
Direct fund expense		224		237		(13	)		249		(25	)		998		895		103
General and administration:
Marketing and promotional		108		102		6			77		31			361		333		28
Occupancy and office related		73		73		-			73		-			293		275		18
Portfolio services		68		76		(8	)		60		8			271		251		20
Technology		62		58		4			61		1			234		203		31
Professional services		47		50		(3	)		42		5			158		142		16
Communications		9		10		(1	)		9		-			37		34		3
Foreign exchange remeasurement		4		8		(4	)		7		(3	)		16		5		11
Contingent consideration fair value adjustments		31		9		22			29		2			65		8		57
Product launch costs		-		-		-			1		(1	)		12		4		8
Other general and administration		47		64		(17	)		54		(7	)		191		191		-
Total general and administration expense		449		450		(1	)		413		36			1,638		1,446		192
Restructuring charge		60		-		60			-		60			60		-		60
Amortization of intangible assets		15		12		3			13		2			50		89		(39	)
Total operating expense	$	2,188	$	2,279	$	(91	)	$	2,180	$	8		$	8,741	$	8,346	$	395

* 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 decreased $127 million from the fourth quarter of 2017, reflecting lower incentive compensation, primarily driven by lower performance fees and lower operating income.

Employee compensation and benefits expense decreased $77 million from the third quarter of 2018, reflecting lower incentive compensation, including the mark-to-market impact of lower deferred compensation expense.

▪ Direct fund expense decreased $13 million from the fourth quarter of 2017 and $25 million from the third quarter of 2018, reflecting lower average AUM.

▪ General and administration expense decreased $1 million from the fourth quarter of 2017, despite $31 million of contingent consideration fair value adjustments related to prior acquisitions in the current quarter.

General and administration expense increased $36 million from the third quarter of 2018, primarily due to seasonally higher marketing and promotional expense.

▪ A restructuring charge of $60 million, primarily comprised of severance and accelerated amortization expense of previously granted deferred compensation awards, was recorded in the fourth quarter of 2018 in connection with an initiative to modify the size and shape of the workforce.

INCOME TAX EXPENSE (BENEFIT)

	Three									Three
	Months Ended									Months Ended							Year Ended
	December 31,									September 30,							December 31,
(in millions), (unaudited)	2018			2017*			Change			2018				Change			2018			2017*			Change
Income tax expense (benefit)	$	247		$	(815	)	$	1,062			$	226		$	21		$	1,076		$	270		$	806
Effective tax rate		21.0	%		(55.1	)%		7,610	bps			15.7	%		530	bps		20.0	%		5.2	%		1,480	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

▪ Both fourth and third 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.

▪ Fourth quarter 2017 income tax benefit included $1.2 billion of net tax benefit related to the 2017 Act and included an $84 million discrete tax benefit, primarily related to stock-based compensation awards.

▪ Third quarter 2018 income tax expense benefited from $90 million of discrete items and a $5 million net noncash tax benefit related to the revaluation of certain deferred income tax liabilities as a result of domestic state and local tax changes.

8

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

	Three Months									Three Months
	Ended									Ended						Year Ended
	December 31,									September 30,						December 31,
(in millions), (unaudited)	2018			2017			Change			2018			Change			2018			2017			Change
Nonoperating income (expense), GAAP basis	$	(72	)	$	1		$	(73	)	$	33		$	(105	)	$	(79	)	$	5		$	(84	)
Less: Net income (loss) attributable to      noncontrolling interests ("NCI")		-			6			(6	)		(13	)		13			(3	)		37			(40	)
Nonoperating income (expense), as adjusted(1)(2)	$	(72	)	$	(5	)	$	(67	)	$	46		$	(118	)	$	(76	)	$	(32	)	$	(44	)
	Three Months									Three Months
	Ended									Ended						Year Ended
	December 31,									September 30,						December 31,
(in millions), (unaudited)	2018			2017			Change			2018			Change			2018			2017			Change
Net gain (loss) on investments(1)(2)
Private equity	$	(15	)	$	-		$	(15	)	$	4		$	(19	)	$	(5	)	$	21		$	(26	)
Real assets		2			15			(13	)		10			(8	)		26			17			9
Other alternatives(3)		(3	)		4			(7	)		1			(4	)		2			38			(36	)
Other investments(4)		(50	)		8			(58	)		(3	)		(47	)		(70	)		43			(113	)
Subtotal		(66	)		27			(93	)		12			(78	)		(47	)		119			(166	)
Other gains(5)		(1	)		-			(1	)		51			(52	)		51			5			46
Total net gain (loss) on investments(1)(2)		(67	)		27			(94	)		63			(130	)		4			124			(120	)
Interest and dividend income		41			14			27			29			12			104			49			55
Interest expense		(46	)		(46	)		-			(46	)		-			(184	)		(205	)		21
Net interest expense		(5	)		(32	)		27			(17	)		12			(80	)		(156	)		76
Nonoperating income (expense), as adjusted(1)(2)	$	(72	)	$	(5	)	$	(67	)	$	46		$	(118	)	$	(76	)	$	(32	)	$	(44	)

⁽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 10 and 11.

⁽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.

⁽⁵⁾ Amounts for the third quarter and full year of 2018 primarily include a $40 million pre-tax gain related to the DSP Transaction and a $10 million noncash pre-tax gain related to the revaluation of another strategic investment.

9

RECONCILIATION OF U.S. GAAP OPERATING INCOME AND OPERATING MARGIN TO OPERATING INCOME AND OPERATING MARGIN, AS ADJUSTED
	Three Months Ended									Year Ended
	December 31,						September 30,			December 31,
(in millions), (unaudited)	2018			2017*			2018			2018			2017*
Operating income, GAAP basis	$	1,246		$	1,485		$	1,396		$	5,457		$	5,254
Non-GAAP expense adjustments:
Restructuring charge		60			-			-			60			-
PNC LTIP funding obligation		4			3			4			14			15
Operating income, as adjusted (1)		1,310			1,488			1,400			5,531			5,269
Product launch costs and commissions		-			-			1			13			-
Operating income used for operating margin measurement	$	1,310		$	1,488		$	1,401		$	5,544		$	5,269
Revenue, GAAP basis	$	3,434		$	3,764		$	3,576		$	14,198		$	13,600
Non-GAAP adjustment:
Distribution and servicing costs		(420	)		(433	)		(408	)		(1,675	)		(1,663	)
Revenue used for operating margin measurement	$	3,014		$	3,331		$	3,168		$	12,523		$	11,937
Operating margin, GAAP basis		36.3	%		39.5	%		39.0	%		38.4	%		38.6	%
Operating margin, as adjusted (1)		43.5	%		44.7	%		44.2	%		44.3	%		44.1	%

See note (1) to the condensed consolidated statements of income and supplemental information on page 11 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									Year Ended
	December 31,						September 30,			December 31,
(in millions), (unaudited)	2018			2017*			2018			2018			2017*
Net income attributable to BlackRock, Inc., GAAP basis	$	927		$	2,295		$	1,216		$	4,305		$	4,952
Non-GAAP adjustments:
Restructuring charge, net of tax		47			-			-			47			-
PNC LTIP funding obligation, net of tax		3			2			3			12			11
The 2017 Act:
Deferred tax revaluation (noncash)		-			(1,758	)		-			-			(1,758	)
Deemed repatriation tax		-			477			-			-			477
Other income tax matters		(2	)		(3	)		(5	)		(3	)		16
Net income attributable to BlackRock, Inc., as adjusted (2)	$	975		$	1,013		$	1,214		$	4,361		$	3,698
Diluted weighted-average common shares outstanding (3)		160.5			163.8			161.4			161.9			164.4
Diluted earnings per common share, GAAP basis (3)	$	5.78		$	14.01		$	7.54		$	26.58		$	30.12
Diluted earnings per common share, as adjusted (2) (3)	$	6.08		$	6.19		$	7.52		$	26.93		$	22.49

See notes (2) and (3) to the condensed consolidated statements of income and supplemental information on page 11 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.

10

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, primarily 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.

▪ 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 and 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. The fourth quarter and full year of 2017 noncash deferred tax revaluation benefit of $1,758 million and the other income tax matters were 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. A deemed repatriation tax expense of $477 million has been excluded from the fourth quarter and full year of 2017 as adjusted results due to the one-time nature 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.

11

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 December 31, 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 November 30, 2018. The performance data does not include accounts terminated prior to December 31, 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 December 31, 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.

12

EX-99.2

Q4 2018 Earnings Earnings Release Supplement January 16, 2019 7/13/2017 10:27 AM BlackRock Exhibit 99.2

A broadly diversified business across clients, products and geographies Assets Under Management of $5.98 trillion at December 31, 2018 Q4 2018 Total Base Fees of $2.779 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 Investment Style Product Type Client Type Region Active Index Cash Equity Equity

Total long-term Retail iShares ETFs Institutional LTM organic asset growth rate (%) LTM organic base fee growth rate (%) 13% 16% 21% 19% 19% 15% 10% 9% 2% 2% 3% 3% 2% 2% 1% 0% Note: LTM organic growth rates measure rolling last twelve months data over beginning of period measure. 10% (2)% 4% 5% 7% 7% 7% 6% 4% 3% 2% 1% 2% 5% 5% 7% 7% 4% 3% 2% 2 Long-term net flows ($ in billions) Institutional Active Institutional Index (2)% (1)% 1% 3% 6% 7% 7% 6% 3%

Profitability ($ in millions, except per share data) For further information and reconciliations between GAAP and as adjusted, see page 12 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 Spot % Change Average % Change Average 12/31/2018 vs. Q4 2018 vs. 43100 43373 43465 43373 43100 Q4 2017 Q3 2018 Q4 2018 Q3 2018 Q4 2017 Equity Indices Domestic S&P 500 2,674 2,914 2,507 -0.13967055593685657 -6.2453253552729994E-2 2,604 2,848 2,693 -5.4424157303370788E-2 3.4178187403993858E-2 Global MSCI Barra World Index 2,103 2,184 1,884 -0.13736263736263737 -0.10413694721825963 2,052 2,151 2,010 -6.555090655509066E-2 -2.046783625730994E-2 MSCI Europe Index 131 129 114 -0.11627906976744186 -0.12977099236641221 132 129 120 -6.9767441860465115E-2 -9.0909090909090912E-2 MSCI AC Asia Pacific Index 174 165 147 -0.10909090909090909 -0.15517241379310345 169 164 152 -7.3170731707317069E-2 -0.10059171597633136 MSCI Emerging Markets Index 1,158 1,048 966 -7.8244274809160311E-2 -0.16580310880829016 1,125 1,054 978 -7.2106261859582549E-2 -0.13066666666666665 S&P Global Natural Resources 3,810 3,985 3,311 -0.16913425345043914 -0.13097112860892388 3,613 3,879 3,580 -7.7081722093323021E-2 -9.1336839191807368E-3 BLK Equity Index (1) -0.12 -0.13 -7.0000000000000007E-2 -7.0000000000000007E-2 Fixed Income Index Barclays U.S. Aggregate Bond Index 2,046 2,013 2,047 1.6890213611525089E-2 -% 2,040 2,018 2,011 -% -1.4215686274509804E-2 Foreign Exchange Rates GBP to USD 1.35 1.3 1.28 -1.5384615384615398E-2 -5.1851851851851892E-2 1.33 1.3 1.29 -7.6923076923076988E-3 -3.0075187969924838E-2 EUR to USD 1.2 1.1599999999999999 1.1499999999999999 -8.6206896551724223E-3 -4.1666666666666706E-2 1.18 1.1599999999999999 1.1399999999999999 -1.7241379310344845E-2 -3.3898305084745797E-2

Quarterly revenue ($ in millions) $(330) $(142) 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. Q4 2018 compared to Q4 2017 Q4 2018 compared to Q3 2018 6               Percentage Change Year-over-Year Sequential Base fees ex. SL (4 )% (3 )% Securities lending (14 )% (19 )% Performance fees (65 )% (34 )% Technology services revenue 15 % 2 % Distribution fees (11 )% (3 )% Advisory and other revenue (19 )% 29 % Total (9 )%   (4 )%  

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. $(118) $(104) Q4 2018 compared to Q4 2017 Q4 2018 compared to Q3 2018 7

Quarterly expense, as adjusted ($ in millions) Quarterly expense, as adjusted, includes non-GAAP adjustments related to a restructuring charge of $60 million in the fourth quarter of 2018 and PNC LTIP funding obligation of $4 million in the fourth quarter of 2018, $3 million in the fourth quarter of 2017 and $4 million in the third quarter of 2018. For further information, see notes (1) through (3) in the current earnings release. $(152) $(52) Q4 2018 compared to Q4 2017 Q4 2018 compared to Q3 2018 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..               Percentage Change Year-over-Year Sequential Employee comp. & benefits (11 )% (7 )% Distribution & servicing costs (3 )% 3 % Direct fund expense (5 )% (10 )% General & administration - % 9 % Amortization of intangible assets 25 % 15 % Total (7 )%   (2 )%  

Full year revenue ($ in millions) $598 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. 2018 compared to 2017 9       Percentage Change Year-over-Year Base fees ex. SL 6 % Securities lending 5 % Performance fees (31 )% Technology services revenue 19 % Distribution fees (2 )% Advisory and other revenue (2 )% Total 4 %

Full year 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. $685 2018 compared to 2017 10

Full year expense, as adjusted ($ in millions) Expense, as adjusted, includes non-GAAP adjustments related to a restructuring charge of $60 million in 2018 and PNC LTIP funding obligation of $14 million and $15 million in 2018 and 2017, respectively. For further information, see notes (1) through (3) in the current earnings release. $336 2018 compared to 2017 11 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..         Percentage Change Year-over-Year Employee comp. & benefits 2 % Distribution & servicing costs 1 % Direct fund expense 12 % General & administration 13 % Amortization of intangible assets (44 )% Total 4 %

Reconciliation between GAAP and as adjusted ($ in millions) Non-GAAP adjustments include amounts related to a restructuring charge, PNC LTIP funding obligations and noncash income tax matters, as applicable. The fourth quarter of 2017 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. 12

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 12 of this earnings release supplement, our current earnings release dated January 16, 2019, and BlackRock’s other periodic reports, which are available on BlackRock’s website at www.blackrock.com. 13