Institutional

Presentation

4Q18

Agenda

2

History

Corporate Governance

Products

Funding

Ratings

History

3

FoundationPayroll Loan

BMG Card

• Beginning of the payroll credit card business

• Pioneer and benchmark in payroll loan in Brazil

PayrollLoan

Acquisitions

• Acquisition of 100% of Banco GE and Banco BCV

• Creation of Joint Venture with Itaúdedicated to Payroll Loans

JV with Itaú

Payroll Credit Card

Exclusive Margin

• Exclusive margin to operate payrollcredit cardin INSS

Help /Insurance

• Launch of the franchise network “help!”

Digital Payments

1930 90s-00s 20112005 20152012 20182016

• TheGuimarãesFamily creates the Banco de Minas Gerais, focused on individual and corporate credit

• Partnership with Generali

• Launch of the Full Digital Bank

• Acquisition of Granito -acquiring company

• Partnership with Autopass

• Sale of BMG participation in the JV to Itaú

Corporate Governance

Corporate Structure

Ownership Breakdown Board of Directors

IM: Independent Member

4

Shareholders % ON % PN % Total

Flávio Pentagna Guimarães 0.0% 55.0% 11.0%

BMG Participações S.A 38.6% - 30.9%

Ângela Annes Guimarães 12.9% 9.0% 12.1%

Regina Annes Guimarães 12.9% 9.0% 12.1%

Ricardo Annes Guimarães 12.9% 9.0% 12.1%

João Annes Guimarães 12.9% 9.0% 12.1%

Antônio Mourão Guimarães Neto 4.7% 9.0% 5.6%

Other 5.1% 0.0% 4.7%

Total number of shares (million) 400 100 500

Board of Directors Position

Bernard Mencier President (IM)

Ângela Guimarães Member

Flavio Guimarães Neto Member

José Eduardo Dominicale Member

João Guimarães Member

Olga Colpo Member (IM)

Regina Guimarães Member

Roberto Faldini Member (IM)

Banco CifraBMG

LeasingBanco BCV

99.99% 100.00% 100.00%

BMG Bank Cayman

100.00%

CB Intermediações

100.00%

BMG Participações em Negócios

BMG Seguros

ME Promotora

BMG Soluções

Eletrônicas

94.50%

CMG Corretora

de Seguros

Cifra Financeira

80.00%

99.99%

99.74% 100.00%99.00%

Corporate Governance

5

Management and control

Audit Committee

Asset and Liability Committee

Transparency and quality of information

Disclosure Committee

Credit analysis

Credit Committee

Definition of policies and actions to prevent

money laundering

Money LaunderingPreventionCommittee

Organizational culture

Remuneration, People and Governance Committee

Initiatives to improve protection, technology

and innovation

Information Security

Committee

Evaluates and addresses market, credit,

operational and liquidity risks and manages

capital

Risk and Capital Management

Committee

3 Monthly 3 Weekly 5 Quarterly 3 Weekly

3 Monthly 5 Quarterly 9 Weekly 3 Weekly

# of permanent members

Main Committees

DeliberativeCommittee

Full DigitalBanking

6

Client-centricityOne-Stop Shop and Client Lifecycle

Tech-enabled

Direct debitLoan

Insurance Investments

Payroll CreditCard

CheckingAccount

Full BiometricProfile

DataAnalytics

ArtificialIntelligence

Omnichannel

1.82Cross-selling Index

3.5 mm Clients

(2.1k new clients/day)1

+2.0k Third-party bankcorrespondents

+58 NPS

472Stores

(1) Average in 2018 (considers business days)

InvestorSaver

Consumer &Precautionary

No-choice borrower

Traditional borrower

Partnerships

Customers with different needs impact the channel strategy and define the products

Banco BMG

CreditCard

39%

62%73%

75%

1%

3%

4%

2%

3%

5%

31%

18%

15%

13%

30%17%

6%

3%8,7478,487 8,633

9,513

2015 2016 2017 2018

Payroll Credit Card Direct Debit Loan Other Retail Products Wholesale Portfolio Run off Total

Credit Portfolio

7

Retail39%

Retail

Retail84%

1 BMG Money and Lendico 2 Payroll loan, vehicles and home equity

1 2

PAYROLL CREDITCARD

TRADICIONALCARD

Credit bureau No Yes

Annuity / sign-up fee No Yes

Interest rate 3% - 5% p.m. ~11% p.m.

Maximum number of installments

Up to 96 months Up to 12 months

Delinquency (NPL) 3% 35%

Exclusive for retirees, pensioners and public

employees

Endorsement of 5% to 10%1 of salary

Minimum installment directly discounted from

payroll

Stable and predictable default rate

Main features

FAVORABLEREGULATORY

ENVIRONMENT

6th largest in Brazil on credit card balance among financial institutions

8

1990

Law 8.112:Payroll loan

Law 10.820/03:Payroll loan for CLT employees, Social

Security retirees and pensioners

2003 2005

INSS/DC 121: Payroll credit card for Social security (INSS)

2015

Law 13.172/15 : Exclusive margin of 5% on thepayroll credit card for Social

Security retirees and pensioners and government

employees

1For municipal and states employees, the consignable margin of the card may vary, reaching up to 10%

Payroll Credit Card

Competitive Advantages

3.6 3.73.9

4.1 4.2

4Q17 1Q18 2Q18 3Q18 4Q18

Federal Government

risk1

6,321 6,5206,805 6,928 7,120

4Q17 1Q18 2Q18 3Q18 4Q18

Payroll Credit Card

Number of cards

9

Frequency the card is used for purchases2

80.8%

Million

94.9% 94.5% 94.7% 94.9% 94.7%

4Q17 1Q18 2Q18 3Q18 4Q18

Portfolio Quality – E-H

R$ Million

3.7% 3.7% 3.9%3.3% 3.1%

4Q17 1Q18 2Q18 3Q18 4Q18

Portfolio

1INSS + federal government employees2Frequency in which customers used the payroll credit card for purchases in the last 12 months

45% of the origination

comes from clients who receive the INSS benefit

at BMG

32% of the portfolio

comes from clients who receive the INSS benefit

at BMG

Direct Debit Loan

Portfolio

R$ Million / p.m.

10

BMG is payer of Social Security (INSS) benefit

Higher efficiency when collecting installments

Lower default rates

Better credit appraisal

Higher cross-selling potencial

Greater bargaining power on agreements

Direct Debit Loan features

Portfolio Quality

Personal credit in which the installments are debited directly from the customer checking

account aiming financial reintegration

Maximum term: 12 months

250 303

358 400

447

21.6% 21.3% 21.1% 20.9% 20.7%

-19,0%

-14,0%

-9,0%

-4,0%

1,0%

6,0%

11,0%

16,0%

21,0%

-

100

200

300

400

500

600

4Q17 1Q18 2Q18 3Q18 4Q18

Portfolio Interest rate

32.9%29.8% 28.5% 31.1% 32.9%

20.2% 18.3% 17.1% 17.1%20.3%

4Q17 1Q18 2Q18 3Q18 4Q18

E-H portfolio Overdue installments over 90 days

10.3% 11.3%13.3% 14.6%

17.0%

4Q17 1Q18 2Q18 3Q18 4Q18

140158

216266

299

42 48 56 66 77

0

20

40

60

80

100

120

140

160

180

200

0

50

100

150

200

250

300

350

4Q17 1Q18 2Q18 3Q18 4Q18

BMG Money (R$) BMG Money (US$)

Personal Credit

Credit Portfolio

BMG Money

BMG Money is an independent company that operates inthe United States with focus on payroll loan for the publicsector employees throughout 17 states;

The transaction is reflected in Banco BMG throughparticipation agreements entered into between BMGMoney and BMG Bank (Cayman).

R$ Million

11

Lendico is a digital banking correspondent that originatespersonal credit for BMG;

In November 2018, BMG’s shareholders sold their share inthe company.

Lendico

123 141

160 166 160

4Q17 1Q18 2Q18 3Q18 4Q18

Credit PortfolioR$ Million

Portfolio Quality – E-H

5.8% 5.5% 5.8% 5.6%6.7%

4Q17 1Q18 2Q18 3Q18 4Q18

Portfolio Quality – E-H

12*Insurance is sold through CMG Corretora - BMG's indirect subsidiary

Issued Premiums Evolution

R$ Million

Partnership with Generali Portfolio Penetration

Life Insurance: also includes assistance and benefits plan for INSS retirees.Average Ticket: R$ 35

BMG CardInsurance: covers the balance due in case of death or permanent disability by accident. Average Ticket: R$ 103

Direct DebitInsurance: covers the balance due in case of death or permanent disability by accident. Average Ticket: R$ 85

Loss and Theft: covers losses resulting from the loss and theft of the payroll credit card.Average Ticket: R$ 4

10.4% 12.3% 12.8% 12.8% 13.3%

64.6%74.6% 79.0% 80.8% 81.5%

4Q17 1Q18 2Q18 3Q18 4Q18

BMG Card Insurance Direct Debit Insurance

Partnership with high cross-selland up-sell potencial

In September 2016, BMG and Generalisigned a 20-year exclusivity agreement for the sale of retail insurance products

in BMG’s distribution network

Mass Insurance

21

29

4944

48

4Q17 1Q18 2Q18 3Q18 4Q18

Asset Light Omnichannel

Third-Party Bank Correspondents

+2kCorrespondents

+14k Consultants

help! Franchise Stores

CallCenter

BMGBranches

472Stores

+1.5kConsultants

One-Stop Shop

Digital Bank

User-friendly

Any time, anywhere, any device

Artificial intelligence

+100kAccounts opened

Other Channels

Partnerships

Complete Biometric

Profile Points of Sale

13

Long history of partnership with BMG

Paperless

756 641

537 507 469

21.3% 20.1%24.7% 25.3% 25.6%

-19,0%

-14,0%

-9,0%

-4,0%

1,0%

6,0%

11,0%

16,0%

21,0%

26,0%

-

200

400

600

800

1.000

4Q17 1Q18 2Q18 3Q18 4Q18

Portfolio Provision/ Portfolio

537 637 658 686

747

4Q17 1Q18 2Q18 3Q18 4Q18

Wholesale Portfolio

CompaniesStructured Operations

Portfolio Quality

14

R$ Million R$ Million

30.6% 30.9%37.0% 35.2% 32.8%

8.2% 11.0%18.1% 17.9% 14.8%

4Q17 1Q18 2Q18 3Q18 4Q18

E-H Portfolio Overdue Installments over 90

2.5%

1.8%1.5%

1.0%1.5%

0.4% 0.2% 0.1% 0.1% 0.1%

4Q17 1Q18 2Q18 3Q18 4Q18

E-H Portfolio Overdue Installments over 90

The portfolio consists of structured operations for bankingcorrespondents and soccer clubs, with collateral thatmitigates the issuers' risks.

The Companies portfolio is composed of financing and ofstructured financial services for medium and largecompanies.

Credit Portfolio Credit Portfolio

Portfolio Quality

BMG Seguros

Created in July 2016, BMG Seguros is an insurance company focused exclusively on the Surety Bond

Segment.

Company belongs to Banco BMG;

Target Audience: Corporate & Large-

Corporate;

Main modalities: Bid Bond, Performance

Bond, Judicial Guarantee, Guarantee of

Payment.

December 2018

Accumulated Written Premiums: R$ 272 million

Accumulated Retained Premiums: R$ 137 million

2018 Net Income: R$ 1.2 million

Financial HighlightsBMG Seguros

15

7th largest insurer in the country in theSurety Bond segment1

1Source: Susep – November 2018

Board Members Position

Marco Antonio Antunes President

Bernard Mencier Member (IM)

Leonardo André Paixão Member (IM)

Marcelo Maziero Member (IM)

Board of Directors

IM: Independent Member

1,108

678

21 3

1Q16 2016 2017 2018

31.1% 30.2%17.6%

5.8% 2.8%

1Q15 2015 2016 2017 2018Run off Portfolio

Run off Portfolio

-81.9%

Vehicles Loan PortfolioPayroll Loan Portfolio

Run Off Portfolio EvolutionHome Equity Loan Portfolio

Tru

esa

leas

sign

men

t

Ru

n o

ff p

ayro

lllo

an

Ru

n o

ff v

ehic

les

loan

Veh

icle

str

ue

sale

-28.3 p.p.

16

-99.8%

R$ Million

R$ Million % of total portfolio

R$ Million

1,368

776

457

247

2015 2016 2017 2018

45

38

27 21

2015 2016 2017 2018

-54.2%

Partnershipwith retailers

17

Outside the Box

2 million active transport cards operating in 39 municipalities of São

Paulo

Strong customer base correlation and cross-sell potential

Acquiring companyfocused on small

business establishments located near help! Stores and bankcorrespondents

White label proposal for full digital bank.

One of the examples in progress are the

partnerships with soccer clubs

BMG Card as a new mean of payment in the largest retailers in

Brazil

Adaptability

Diversified Funding

18

42% 55%

70%76%

30% 24%

14%

13%13%

12%

8%

6%9%

6%

5%3%5%

4%

2%1%

12,119

10,215

11,939 12,354

2015 2016 2017 2018

Deposits External Funding Credit Assignment + Securitization Letra Financeira Other Total

Time deposits

22%

Time deposits

76%

+130k direct and indirect retail

investors

55% of the funding is done

through BMG

+50brokers anddistributors$

1Considers CDB with the market

1 1

9.5%

13.2%

15.7%

18.9%19.8% 20.2%

22.6%

3.3%

5.6%

9.7%

12.3% 12.6%13.8%

15.4%

2015 2016 2017 1Q18 2Q18 3Q18 4Q18

NIM NIM ajusted to the cost of credit

+13.1 p.p.

+12.1 p.p.

% per year

19

Profitability

Margin Evolution

1) Methodology: interest margin + Income from services rendered / average interest-earning assets.

2

2) Methodology: interest margin after loan provision expenses net of recovery and agents commission + Income from services rendered / average interest-earning assets.

1

Ratings

20

Agency Date Rating Perspective

FITCH January 2019

Local currency A- (bra)

Stable

Foreign currency B+

Moody‘s July 2018

Local currency Baa3.br

Negative

Foreign currency B1

RISKbank January 2019 9.93Low Risk Medium

Term 2

Main Indicators

21

Financial Highlights (R$ Million) 4Q18 3Q18 2Q18 1Q18 4Q17 2018 2017

Net Income 40 55 45 31 6 171 26

Recurring Net Income1 61 77 67 53 28 258 113

ROAE 6.0% 8.3% 6.9% 4.9% 0.9% 6.4% 1.0%

Recurring ROAE1 10.4% 13.1% 11.7% 9.5% 5.0% 10.8% 5.1%

ROAA 0.9% 1.3% 1.1% 0.8% 0.1% 1.0% 0.2%

Basel Index 12.4% 13.1% 13.9% 14.1% 15.7% 12.4% 15.7%

Net Interest Margin 22.6% 20.2% 19.8% 18.9% 16.2% 19.0% 15.7%

Efficiency Ratio 45.6% 54.3% 52.3% 52.8% 77.8% 50.9% 61.7%

NPL2 – E-H Portfolio 6.6% 6.7% 7.2% 7.0% 7.6% 6.6% 7.6%

NPL3 – Overdue installments 3.9% 3.9% 4.5% 4.0% 4.0% 3.9% 4.0%

Balance Sheet (R$ Million) 4Q18 3Q18 2Q18 1Q18 4Q17

Total Credit Portfolio 9,513 9,265 9,096 8,824 8,633

Retail Portfolio4 8,026 7,759 7,540 7,122 6,834

Wholesale Portfolio 1,215 1,193 1,196 1,278 1,293

Run off Portfolio 5 271 313 360 425 505

Total Assets 16,938 16,959 16,170 16,148 16,260

Shareholders’ Equity 2,640 2,757 2,701 2,635 2,572

Total Funding 12,354 12,489 11,852 11,822 11,939

1) Recurring Net Income and ROAE, excluding the effects of goodwill, see "Net Income and Profitability“ in the Earnings Release.2) Methodology: Portfolio classified by E-H/Total Portfolio, including overdue plus falling due installments.3) Methodology: Installments overdue more than 90 days/Total Portfolio. 4) The retail portfolio includes Payroll Credit Card and Personal Credit.5) The run off portfolio includes the payroll loan, vehicles and home equity loan.

22

Contact & Disclaimer

INVESTOR RELATIONS TEAM

Tel.: +55 11 3067-2048

ri@bancobmg.com.br

www.bancobmg.com.br/ir

We make forward-looking statements that are subject to risks and uncertainties. These statements are based on the beliefs and assumptions of ourmanagement. and on information currently available to us. Forward-looking statements include statements regarding our intent. belief or currentexpectations or that of our directors or executive officer.Forward-looking statements also include information concerning our possible or assumed future results of operations. as well as statements preceded by.followed by. or that include the words ''believes'' ''may'' ''will'' ''continues'' ''expects'' ''anticipates'' ''intends'' ''plans'' ''estimates'' or similar expressions.Forward-looking statements are not guarantees of performance. They involve risks. uncertainties and assumptions because they relate to future eventsand therefore depend on circumstances that may or may not occur. Our future results and shareholder values may differ materially from those expressedin or suggested by these forward-looking statements. Many of the factors that will determine these results and values are beyond our ability to control orpredict.