Shares of Bank of America (BAC) and Morgan Stanley (MS) are rising Tuesday morning after reporting first quarter earnings. Both companies beat Wall Street estimates for revenue and adjusted earnings per share (EPS): Bank of America reported $25.82 billion against a projection of $25.61 billion and took home an adjusted EPS of $0.83 against estimates of $0.77. Morgan Stanley posted revenue of $15.14 billion against estimates of $14.46 billion, and adjusted earnings per share of $2.02 against projections of $1.66.

Yahoo Finance's Madison Mills joins The Morning Brief to break down both companies' reports.

For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.

This article was written by Gabriel Roy.

Video Transcript

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BRAD SMITH: Today's top story. Bank of America and Morgan Stanley closing out the big bank earnings this morning. Shares of both firms moving higher premarket trading as both companies beat the Street expectations for the first-quarter revenue and adjusted earnings per share. Yahoo Finance's Madison Mills is here with the top takeaways from these reports. Hey, Maddie.

MADISON MILLS: Hey. Well, we're going to start on Bank of America here, because they beat on that critical data point net interest income. Remember that JPMorgan, Citi did not beat on that last week. In terms of the expectations from the Street, all of the banks I do want to point to this confusion here. There's the expectation from Wall Street and then there's the previous quarter's performance.

All of these banks having pressure on net interest income when it comes to their performance compared with the previous quarter. Just now, Bank of America on their call saying that they think net interest income is going to start to bottom out as we head into next quarter. So that could be an indication of some rebounding here.

I also want to talk about Bank of America's wealth management deposit growth. That was up. But overall, deposits were down and loans were down. And this was a critical data point that Bank of America points out that some of the other banks don't. For their auto lending space, you need a FICO score of over 800 that is like stellar, stellar.

And for credit cards, you need 777. That was up from 774. So seeing that Bank of America is sort of becoming maybe a luxury lender at this point in time. They're not necessarily lending to folks who are in the middle and lower income ranges. So that's something I'm interested in hearing more about on the call this morning.

SEANA SMITH: And certainly, you would think it also maybe better positions them, especially given the uncertain environment, maybe, going forward. OK, so that's what we heard from Bank of America this morning. Maddie, what about Morgan Stanley? Because again, when you take a look at least in the premarket trading action, we're seeing a bit of a bump here in shares, and it looks like another strong quarter from Morgan Stanley as well.

MADISON MILLS: Another strong quarter, particularly in a couple of different areas Equities, trading, and fixed income beating. Having said that, equities was below their rival on the Street, Goldman Sachs. So it's still pointing to that broader competition there. Net interest income coming in a little bit lower than anticipated for Morgan Stanley.

Also, their advisory fees were a little bit light. Goldman's fees on that coming in double. But in terms of the good news for Morgan Stanley, you've got profits up 14% and investment banking revenue up 16%.

Again, missing when compared with that rival Goldman Sachs here, but still a huge increase on that investment banking revenue, which could point to a broader picture of an increase in dealmaking that could be indicative of a stronger economy to come. And this comes also after kind of a two-year drought when it comes to investment banking and dealmaking activity. So, nice for them to see that rebounding this morning.