Best Execution at the Andean Region

Hernán Arellano, MD of Capital Markets, Credicorp Capital

Hernán Arellano

Credicorp Capital was created in 2012 as an investment banking platform, integrating operations in the US (Credicorp Securities Inc.), Peru (BCP Capital), Chile (IM Trust), Colombia and Panama (Correval).  After 4 years of operations, we have become the largest, full-service investment bank within the MILA with over 1,000 people working with us.

The success in the equity business has been more visible due to the exposure to global clients. We took the leadership of this business on the region and have broadened our reach and client base not only through our local offices in Chile, Peru, Colombia and Panamá, but also through our broker dealer in the United States and our representative office in London.

Our goal is to become the most relevant and most trusted investment banking equity platform in the region and we have got that recognition, not only by our clients, but also by several institutional entities, such as the Stock Exchanges of Chile, Colombia and Peru which named Credicorp Capital as the best broker dealer in the MILA region last year.

One of the key concets in our strategy is based on providing the Best Execution on Equities across the region, and we have done it. We provide the highest possible levels of liquidity with nearly 28% market share in Peru, 14% in Chile, and 22% in Colombia. We focus our platform on Equity Cash business and we are able to cross most of our trades, having less than 2% of Net Trading Imbalance, which means that over 98% of the times we can get a buyer for a certain offer or a seller for a certain bid, diminishing the bid ask spread and therefore assuring the best prices to our clients.

Our success has also new challenges and we have to look for opportunities in order to continue creating value for our clients and shareholders. Bearing that in mind, Credicorp Capital transformed its broker dealer in the US (Credicorp Capital Securities Inc.) into its one-stop shop vehicle for foreign clients, consolidating our Equity business, including all flows North-South and vice versa.

However, our Best Execution also comes from having a strong middle and back office, so once ready with the interconnected technology among the countries we focus our efforts on standardized our services also on the back, so the experience of trading with us is the same on every country. Our clients get state of the art technology, live fills, DMA and Algo Trading, precise allocations, settlements and the highest compliance standards, which are followed by every Credicorp Ltd. (NYSE: BAP) affiliate.

Today, after 4 years following Credicorp Capital’s formation, we are very proud to be the market leader on our countries and to successfully implement the merger of 3 companies keeping the best of our Chilean presence (IM Trust—founded 30 years ago), our Colombian presence (Correval—with nearly 31 years in the market) and Credicorp Ltd., who’s primary operation, BCP, began over 125 years ago.

We expect to strength our position in the region during 2016 and to offer the Best Execution on every Investment Banking Service to our clients. We will continue growing organically on our industry and we are also open to analyze inorganic opportunities with operational leverage. We expect to be the main Broker Dealer in the Region with the Best Execution practices and also the strongest distribution team to leverage our Corporate Finance strength on equities and fixed income.