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Antonio Ruette

Antonio Ruette

Research Analyst at Bank of America Corp. /de/

Catanduva, SP, BR

Antonio Ruette is an Equity Research Analyst at Bank of America Merrill Lynch, specializing in the coverage of Brazilian financial institutions such as Banco ABC Brasil and Banrisul. He provides actionable insights and investment ratings, including a notable 'Sell' recommendation with a target price of BRL 10.00 for Banrisul, and is featured among primary analysts for leading banks in the region. Ruette began his career in equity research after graduating from Pontifícia Universidade Católica de São Paulo, joining Bank of America Merrill Lynch and establishing himself as a trusted expert in Latin American banking stocks. His professional credentials include expert-level financial analysis and direct client advisories, with a robust track record in sector coverage and investment publication.

Antonio Ruette's questions to PagSeguro Digital (PAGS) leadership

Question · Q1 2025

Sought clarification on the TPV deceleration, specifically the impact of repricing and churn on MSMBs. Also asked for the rationale behind choosing dividends over more buybacks, and for more detail on merchant 'mortality' and which large account segments were most affected by repricing.

Answer

The MSMB TPV slowdown may have some impact from repricing and natural merchant mortality in a tough economy, but it is not a major concern. The dividend is a new tool used in combination with buybacks to enhance shareholder returns. The main impact of repricing was felt in the large retail segment, which is not a primary focus for the company.

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Question · Q1 2025

Antonio Gregorin Ruette followed up on TPV, asking if repricing efforts negatively impacted the MSMB segment and seeking clarification on what 'mortality' refers to. He also asked for more rationale on choosing to initiate cash dividends rather than allocating more capital to buybacks.

Answer

Executive Ricardo da Silva acknowledged that repricing could have some friction with larger MSMBs, but it is not a significant issue. He explained that 'mortality' refers to the natural churn of smaller businesses, which is exacerbated by the high-interest-rate environment. On capital allocation, he reiterated that dividends are a complementary initiative to the ongoing, aggressive buyback program, designed together to enhance shareholder value and improve Return on Equity.

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Question · Q1 2025

Antonio Gregorin Ruette from Bank of America questioned if repricing negatively impacted MSMB TPV, sought more detail on the choice of dividends over buybacks, and asked for clarification on 'merchant mortality' and which large account segments decelerated.

Answer

Executive Ricardo da Silva acknowledged repricing can cause some churn in larger MSMBs but stated it's not a major issue. He defined 'mortality' as the natural failure rate of small businesses, which is heightened in the current macro environment. The large retail segment saw the most significant deceleration. He reiterated that dividends are a complementary tool to buybacks, aimed at enhancing ROE and shareholder value.

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Question · Q4 2024

Antonio Ruette from Bank of America requested more detail on the drivers of the robust TPV growth in the LMEC segment and asked for feedback on the repricing strategy initiated in Q4 2024, including its success and impact on churn.

Answer

Executive Ricardo da Silva described repricing as a dynamic, ongoing process targeted at specific client clusters, noting it has continued into 2025 and that peers are also repricing. CFO Artur Schunck and Executive Alexandre Magnani attributed the 45% LMEC TPV growth to e-commerce, cross-border payments, and integrated partners, with cross-border growing fastest. Ricardo da Silva emphasized that the company prioritizes profitability over pure TPV growth.

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Antonio Ruette's questions to XP (XP) leadership

Question · Q4 2024

Antonio Gregorin Ruette asked for an explanation of the diverging trends in headcount, which increased, and the total number of advisers, which decreased. He also questioned how XP addresses the challenge of cross-selling products when IFAs may have existing relationships with other providers.

Answer

CEO Thiago Maffra explained the adviser count decreased due to a focus on quality and a regulatory change allowing IFAs to become employees. Meanwhile, headcount grew from hiring 50-80 internal advisers per month. To drive cross-selling, he said XP offers IFAs superior economics, a better integrated technology platform (The Hub), and has exclusivity agreements covering all products with over 90% of its IFA network.

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Antonio Ruette's questions to Inter & Co (INTR) leadership

Question · Q1 2024

Antonio Ruette requested a deeper analysis of the net interest margin (NIM), asking for expectations on how the portfolio mix, repricing, and the use of excess liquidity would contribute to future performance.

Answer

Executive Santiago Stel reiterated the three main drivers of NIM expansion: an improving mix towards high-yield products like FGTS, home equity, and private payroll; ongoing repricing of legacy mortgage and public payroll loans; and optimizing the investment portfolio yield. He highlighted that the ultimate goal is to maximize the risk-adjusted NIM, which has been growing by approximately 20 basis points per quarter, a trend he expects to continue.

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