(Bloomberg) – Charles Schwab Corp. jumped early in New York trading after the company reported earnings per share that beat analysts' estimates and reduced some of its expensive debt, a sign that the company was emerging from a period of turmoil last year has left himself.

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The company said adjusted earnings per share for the third quarter were 77 cents, beating analysts' forecasts. Adjusted net income was $1.5 billion in the period, slightly higher than a year ago.

Schwab's customer transaction cash sweep – which suffered a setback as customers shifted their funds in search of higher-yielding options – rose $9.2 billion sequentially and helped the company avoid costly additional bank financing by $8.9 billion to reduce, it said in a statement on Tuesday.

The company's shares rose 9.3% in early trading in New York at 8:48 a.m.

Schwab endured one of its most challenging years in decades last year as sharp interest rate hikes took their toll on its business. Customers had been withdrawing their deposits from Schwab's bank in search of higher-yield alternatives, prompting the company to seek more expensive sources of financing. Higher interest rates also hit the company with paper losses as the value of its bond investments took a significant hit.

Executives have since said the worst of the problems have eased as they vowed to shrink the bank over time and prioritize paying down costlier debt.

Earlier this month, Schwab named Rick Wurster as the company's next chief executive, tapping him to take over the retail brokerage business from longtime leader Bettinger, who is retiring at the end of the year. Wurster's appointment followed other leadership changes, including the naming of Mike Verdeschi – a veteran of Citigroup Inc. – to replace Peter Crawford as chief financial officer.

“Q3 net asset creation of over $95 billion increased year-to-date core net new assets to $252 billion – a 10% year-to-date increase over 2023,” said Schwab CEO Walt Bettinger.

The company reported total net new assets of $90.8 billion in the quarter, an increase of 88% from the same period last year. The company said customer transaction cash balances were $384 billion in September.

(Updates throughout with additional metrics, starting with net income in the second paragraph.)

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