BlackRock (BLK) reported $432m in net income for Q210, up from a $423m gain in the previous quarter and almost double the $218m in earnings reported a year ago. Assets under management decreased 6% from the previous quarter to $3.15trn. The investment bank reported $1.7bn in advisory, administration fees, and securities lending revenue in Q210, up 2% from the previous quarter and more than double from a year ago. But the $5bn net gains on investments dropped 91% from $53bn reported a year ago and down 83% from $30bn in the previous quarter. Investments on distressed credits and mortgage funds had the biggest drop to $5bn – an 89% drop a year ago and a 75% decrease from the previous quarter. BlackRock did report $741m in overall operating income, a 2% increase from Q110 and a 145% jump from the $302m reported last year. The results, according to the company, reflect benefits from its acquisition of Barclays Global Investors (BGI) in December 2009. There was a $32m pre-tax integration cost to the merger in Q210, but Laurence Fink, chairman and CEO of BlackRock said the acquisition is starting to take hold. “During the second quarter, we made major strides on our merger,” commented Laurence Fink, chairman and CEO of BlackRock. “The systems integration remains on schedule, and key aspects of the cultural integration are behind us.” Write to Jon Prior. The author holds no relevant investments.