Charles Schwab (SCHW, Financial) saw its stock jump over 8% following the release of its better-than-expected third-quarter earnings. The stock maintained a 6.33% increase, reaching a price of $73.11. The company reported adjusted earnings per share of $0.77, surpassing analyst expectations of $0.75. Additionally, net revenue was $4.85 billion, exceeding the anticipated $4.79 billion. Net interest income also came in higher at $2.22 billion compared to the expected $2.0 billion.
Schwab experienced a $9 billion increase in customer cash balance, which facilitated a reduction of $8.9 billion in bank supplementary funding. Company executives noted that the significant interest rate hikes by the Federal Reserve had previously pressured Schwab's business as clients sought better returns. However, they believe that the worst of the impacts have now passed.
