PNC Bank 2001 Annual Report Download - page 39

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37
BLACKROCK
Year ended December 31
Dollars in millions 2001 2000
INCOME STATEMENT
Investment advisory and
administrative fees $495 $453
Other income 38 24
T
otal revenue 533 477
Operating expense 292 248
Fund administration
and servicing costs – affiliates 61 76
Amortization of intangible assets 10 10
Total expense 363 334
Operating income 170 143
Nonoperating income 11 7
Pretax earnings 181 150
Income taxes 74 63
Earnings $107 $87
P
ERIOD-
E
ND BALANCE
S
HEET
Intangible assets $182 $192
Other assets 502 345
Total assets $684 $537
Liabilities $198 $169
Stockholders’ equity 486 368
Total liabilities and
stockholders’ equity $684 $537
P
ERFORMANCE
D
ATA
Return on equity 25% 27%
Operating margin (a) 36 36
Diluted earnings per share $1.65 $1.35
(a) Excludes the impact of fund administration and servicing costs - affiliates.
BlackRock is one of the largest publicly traded investment
management firms in the United States with approximately
$239 billion of assets under management at December 31,
2001. BlackRock manages assets on behalf of institutions and
individuals worldwide through a variety of fixed income,
liquidity and equity mutual funds, separate accounts and
alternative investment products. Mutual funds include the
flagship fund families, BlackRock Funds and BlackRock
Provident Institutional Funds. In addition, BlackRock
provides risk management and investment system services to
institutional investors under the BlackRock Solutions name.
BlackRock continues to focus on delivering superior
investment performance to clients while pursuing strategies
to build on core strengths and to selectively expand the
firm’s expertise and breadth of distribution.
Earnings increased 23% in the year-to-year comparison
primarily due to a $35 billion or 17% increase in assets under
management. New client mandates and additional funding
from existing clients resulted in $31 billion or 90% of the
increase in assets under management.
Total revenue for 2001 increased $56 million or 12%
compared with 2000 primarily due to new institutional
liquidity and fixed-income business and strong sales of
BlackRock Solutions products. The increase in operating
expense in the year-to-year comparison supported revenue
growth and business expansion.
See Business and Economic Conditions and Asset
Management Performance in the Risk Factors section of this
Financial Review for additional information regarding
matters that could impact asset management revenue.
Assets Under Management
December 31 – in billions 2001 2000
Separate accounts
Fixed income $119 $104
Li
q
uidit
y
76
Li
q
uidity – securities lendin
g
11 12
E
q
uit
y
10 9
Alternative investment
p
roducts 53
T
otal se
p
arate accounts 152 134
Mutual funds (a)
Fixed income 16 13
Li
q
uidit
y
62 43
E
q
uit
y
914
T
otal mutual funds 87 70
T
otal assets under mana
g
emen
t
$239 $204
(a) Includes BlackRock Funds, BlackRock Provident Institutional Funds, BlackRock
Closed End Funds, Short Term Investment Funds and BlackRock Global Series
Funds.
BlackRock, Inc. is approximately 70% owned by PNC and is
listed on the New York Stock Exchange under the symbol
BLK. Additional information about BlackRock is available in
its filings with the Securities and Exchange Commission
(“SEC”) and may be obtained electronically at the SEC’s
home page at www.sec.gov.