InstitutionalPresentation1Q20

Agenda

2

Banco BMG

Assets

Liabilities

Corporate Governance

Ratings

Track record of innovation

3

Precursor of third-party correspondent banks

channel

JV with

Payroll Credit Card

Pioneering

Franchising

Distribution channel

Asset Light

Owner’s view

Our Mission

popularizefinancial services

in Brazil

Absolute leader

Payroll Loan

Digital Bank

User friendly

Artificial Intelligence

3.0

3.5

4.1

3.6

4.3

2017 2018 2019 1Q19 1Q20

113

258344

99 97

5.1% 10.8% 12.5%

17.2%

10.5%

15.7% 12.4% 22.5%

12.4%

19.9%

-100,0%

-80,0%

-60,0%

-40,0%

-20,0%

0,0%

20,0%

-10205080

110140170200230260290320350380410440470500530560590620650

2017 2018 2019 1Q19 1Q20Recurring net income Recurring ROAE(%) Basel

Number of clients

4

Credit portfolio

R$ MillionMillion

15.7%19.0%

22.5% 22.8%26.8%

9.7%12.9% 14.4% 14.9%

16.8%

2017 2018 2019 1Q19 1Q20

NIM NIM adjusted to the cost of credit

Net interest margin Recurring results

+19%

% p.a. R$ Million e % p.a.

+21%

6,7117,866

9,6678,206

9,928

1,2931,215

1,625

1,314

1,664

628

432

163333

127

8,6329,513

11,4559,853

11,718

2017 2018 2019 1Q19 1Q20

Retail Wholesale Run off Column1

+17%

Growth with profitability

1.78xCross-selling Index

Full DigitalBanking

5

Client-centricityOne-Stop Shop and Client Lifecycle

Tech-enabled

Full Biometric Profile

DataAnalytics

ArtificialIntelligence

PHYGITAL

4.3 mm Active clients

2.0k Third-party bank correspondents

822Stores

Partnerships

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

Credit and debit card

Investments

Checking account

InvestorSaver

No-choice borrower

Traditional borrower

Payroll loan

Payroll credit card

Directdebit loan

Insurance

Save for me

Poor and financially uneducated

Average Income

R$ 708/month to R$ 5,400/month 93%

Cashback

Banco BMG

PHYSICAL DIGITAL

Physical channels in the most diverse formats

Physical stores: face-to-face or remote service

Call centers with electronic formalization

Partner visiting clients

Fast adaptation

57% 46%87%

W1 W4 W7

% of origination x target

Weeks of quarantine

PHYGITAL strategy

MERITOCRATIC ALIGNMENT

6

Client relates to the physical

channel Client hires credit

products

Physical channel helps the onboarding

of the digital bankClient acquires new products and benefits

Client renews credit

products

help! tech-touch model

Franchise network, specializing in the low-income market financial services, with a one-stop shop concept and tech-touch performance model

Full biometric profile

PinpadFacial Biometry

Fingerprint Reader

Voice Recorder

Eletronic Signature Pad

+security for digital inclusion

Stores evolution

Efficient and scalable

Indicator based on the quarterly evolution of origination of the direct debit product.

Number of consultants per store

7

100125

150179

201

Q1 Q3 Q6 Q9 Q12

Evolution of origination per consultant(base100)

2.12.3

2.7 2.9 3.1

Q1 Q3 Q6 Q9 Q12

161 231 319 360 328

378 389

413 442 494 539

620 732

802 822

1Q19 2Q19 3Q19 4Q19 1Q20

CBFácil Other Franchisees

63% of stores opened in

less then 12 months

44 stores transferred in

1Q20

+ 1 millionaccounts

Duda

Artificial Intelligence helping operations from begining until the end

Means of payment

Basic servicesCredit Products

Investments

• Checking account• Payments• Transfers• Insurance

• Payroll loan• Personal credit

• Opened debit and credit cards

• Payroll Credit Card

• Virtual piggy bank• Cashback

Benefits

Acquisition and monetization strategy

Value proposition and differentiation

Greater capacity of credit operation for target clients

Volta pra Mim: cashback program on BMG’s debit or credit cards

Poupa pra Mim: simple way to save money in a virtual piggy bank

Withdrawn via QRCode

Partnership with soccer clubs

Digital Bank

+ 800 kMonthly Active Users

8

Main features Recent changes

Payroll Credit Card

1990 2003 2005 2015

ROBUST LEGISLATON

On March 17, the CNPS reduced the

maximum INSS rate to 2.7% p.m. from

3.0% p.m.

BMG INSS portfolio: R$ 6.0 bn (in 1Q20)

Will affect revenues as of April/20

9

Law 8.112:Payroll loan for

federal government employees

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

Security retirees and pensioners

INSS/DC 121: Payroll credit card for Social security

(INSS)

Law 13.172/15 : Exclusive margin of 5% on the payroll credit card for

Social Security retirees and pensioners and

government employees

Target - retirees, pensioners and public employees1

Endorsement of 5% to 10%2 of salary

Minimum installment directly discounted from payroll

Important mean of payment

Default events correlated to payroll loan

1 - Market can also operate with private company2 - For municipal and states employees, the consignable margin of the card may vary, reaching up to 10%

Payroll Credit Card

7,316 7,533 7,754 7,933 8,114

1Q19 2Q19 3Q19 4Q19 1Q20

Portfolio

R$ Million

83,8%

Portfolio Quality – E-H (over 90 days)

2

Important mean of payment

9.7%

42%

4.3 million

92%

Main establishments

DIGITAL INCLUSION

Google Play

Netflix

UBER 99TaxiObserved increase in the

volume of purchases

10

Federal Government

risk1

of the transactions made with the BMG payroll credit card are for purchases3

3.0% 3.2% 3.1% 3.3% 3.3%

3.2% 3.4% 3.4% 3.6% 3.7%

1Q19 2Q19 3Q19 4Q19 1Q20

E-H portfolio E-H portfolio insurance simulation

1 - Social Security (INSS) + federal government employees 2 - Management view without the loss mitigation of the lender insurance3 - Frequency in which customers used the payroll credit card for purchases in the last 12 months

of Payroll Credit Cards

growth of interchange fees (1Q20 x 1Q19)

of penetration of mass insurancein the portfolio

SecuritizationCompany

service

Securization Partnership

1

INSS

Volume: R$ 230 million

Entities: INSS and Federal

Average Interest (p.m.): 1,8% (INSS) e 2,0% (Federal)

Volume: R$ 281 million

Assignment result + service: R$ 10 million

Available limit: R$ 1,040 million

0.29%p.m.

Origination 1Q20

Credit Assignment 1Q20

Resumption of payroll loan

DataPrev

Portfolio

11

On March 17, the CNPS reduced the maximum INSS interest rate to 1.8%p.m. and increased the maximum term to 84 months. Such changes do not affect the Bank’s pricing of the product

1 – Credit assignment without retention of risks and benefits

Assignment Limit Value

R$ 1,5 bi

Direct Debit Loan

Portfolio

R$ Million / p.m.

12

Main Features

Portfolio Quality

Personal credit with direct debit from the customer checking account aiming financial reintegration;

Maximum term 15 months

532612

685778

855

20.5% 20.4% 20.3% 20.4% 20.4%

-30,0%

-20,0%

-10,0%

0,0%

10,0%

20,0%

0

200

400

600

800

1000

1200

1Q19 2Q19 3Q19 4Q19 1Q20

Portfolio Interest rate

30.0% 27.4% 28.5% 28.8% 27.6%

1Q19 2Q19 3Q19 4Q19 1Q20

E-H portfolio

74% of Direct Debit clients have BMG Payroll Credit Card.

BMG is payer of Social Security (INSS) benefit

Higher efficiency when collecting installments

Lower default rates

Greatest potential of loyalty

56% of the portfolio

(vs. 38% in 1Q19)

comes from clients who receive the INSS

benefit at BMG

61% of the origination

(vs. 51% in 1Q19)

Other Portfolios

6.8% 7.4% 7.4% 7.5%9.9%

1Q19 2Q19 3Q19 4Q19 1Q20

E-H Portfolio

19.2% 21.5% 23.4% 22.8% 22.3%

1Q19 2Q19 3Q19 4Q19 1Q20

E-H Portfolio

358 383483

595690

92 100 116 148 133

0

100

200

300

400

500

600

700

800

1Q19 2Q19 3Q19 4Q19 1Q20

Balance (R$) Balance (US$)

Credit Portfolio

U.S. Payroll Loan

BMG Money is an independent company that operates inthe United States with focus on payroll loan for the publicsector employees in lower turnover activities such ashospital, school, police and firefighters;

The operation is reflected in BMG through participationagreements among BMG Money and BMG Bank (Cayman).

R$ Million

13

Run-off Portfolio

Credit PortfolioR$ Million

Portfolio Quality Portfolio Quality

Banco BMG has the following run-off portfolios: payrollloan, Lendico, home equity and vehicle financing;

Represents 1.1% of total portfolio.

333282

209163

127

1Q19 2Q19 3Q19 4Q19 1Q20

Mass Insurance

14

Partnership with Generali

Issued Premiums Evolution Sources of Income

R$ 24 million in revenue in 1Q20

(vs. R$ 12 million in 1Q19)

R$ 9 million in net

service revenue¹

R$ 3 million in profit

share

R$ 12 million reduction

in provision expenses

+ +

R$ Million

1 - The commission referent to the sale of insurance is accounted by BMG via the equity equivalence of its indirect subsidiary CMG Corretora

47

57 54 59 62

1Q19 2Q19 3Q19 4Q19 1Q20

Means of Payment

~15 thousand merchants

Take rate: 3.6%

1Q20 Highlights

270316

361 343277

1Q19 2Q19 3Q19 4Q19 1Q20

Total Payment Volume R$ Million

In 2018, the Bank acquired 65% of Granito, with the purpose of bolstering its product portfolio and increasing its capillarity with BMG's existing distribution channels. Granito stands out for its

differentiated solutions from the market.

15

Ecosystem

Bar

Beauty shopLocal shop

Gas station

Newstand Bakery

Construction store

Wholesale Portfolio

Companies

Structured Operations

16

structured operations for banking correspondents andsoccer clubs, with collateral that mitigates the issuers' risks.

The portfolio is composed of financing and of structuredfinancial services for medium and large companies.

875972

1,045 1,101 1,138

2.3% 2.0% 1.9% 1.9% 1.7%

0,0%

1,0%

2,0%

3,0%

4,0%

5,0%

6,0%

7,0%

8,0%

9,0%

10,0%

0

200

400

600

800

1000

1200

1Q19 2Q19 3Q19 4Q19 1Q20

Portfolio NPL (E-H portfolio)

439 458528 524 526

25.5%

13.7% 12.4% 12.8% 12.6%

0,0 %

10, 0%

20, 0%

30, 0%

40, 0%

50, 0%

60, 0%

70, 0%

80, 0%

90, 0%

0

100

200

300

400

500

600

700

800

900

1Q19 2Q19 3Q19 4Q19 1Q20

Portfolio NPL (E-H portfolio)

Created in July, 2016, and controlled by Banco BMG, the company focused on the Surety Bond

Segment.

Company belongs to Banco BMG;

Target Audience: Corporate & Large-

Corporate;

Since November 2019, Generali holds 30%

interest in BMG Seguros

Written Premiums: R$ 35 million

Retained Premiums: R$ 23 million

Net Income: R$ 2 million

BMG Seguros

Financial Highlights – 1Q20

Diversified Funding

R$ Million

Funding evolution Asset & Liability Management

• Adequate cash level

• Positive gap with the duration of liabilities longer than the assets by 5 months

• Receipt of credit installments has been performing normally

• Appropriate evolution of the renewal of deposits

• High capacity for securitization of assets

• BACEN measures generate additional liquidityo LFG: R$ 2.9 billion limito NDPGE: R$ 2.0 billion limit

Market funding breakdown

17

12,211 12,697 13,217 12,382 12,673

12,234 12,723 13,246 12,40913,705

1Q19 2Q19 3Q19 4Q19 1Q20

Market funding Subsidiaries

Time Deposit81.0%

Financial Bills5.4%

Credit Assignment

1.0%

External Funding

6.9%

Securitization2.5%

Capital

R$ Million

18

Shareholders’ Equity and Basel Ratio

+ 15 p.p.

Capital quality improvement

54% 56% 58%

70% 69%

2,673 2,700 2,733

4,028 3,968

12.4% 13.6% 13.8%22.5% 19.9%

1Q19 2Q19 3Q19 4Q19 1Q20

Main Capital Shareholders' Equity Basel Ratio

Comfortable capital level, sufficient for growth plan and stress scenario

Corporate Governance

Corporate Structure

Ownership Breakdown

19

Banco Cifra

BMG Leasing

Banco BCV

99.99% 100.00% 100.00%

BMG Bank

Cayman

100.00%

CB FácilCorretora

65.01%

BMG Participaçõesem Negócios

BMG SegurosME

Promotora

BMG Soluções

Eletrônicas

92.99%

CMG Corretora de

SegurosGranito

80.00%

99.99%

99.38% 70.00%99.00%

Help Franchising

99.98%

100.00%

CifraFinanceira

Shareholders % ON % PN % Total

Flávio Pentagna Guimarães - 20.2% 6.5%

BMG Participações S.A 38.6% - 26.1%

Ângela Annes Guimarães 12.9% 4.7% 10.2%

Regina Annes Guimarães 12.9% 4.7% 10.2%

Ricardo Annes Guimarães 12.9% 5.1% 10.4%

João Annes Guimarães 12.9% 4.7% 10.2%

Antônio Mourão Guimarães Neto 4.7% 4.7% 4.7%

Treasury stocks - 1.4% 0.5%

Others 5.1% - 3.5%

Shares traded at B3 - 54.5% 17.6%

Total number of shares (million) 400 191 591

Corporate Governance

20

Board of Directors with Complementary Experience & Skill Set

Independent Board Members

José Eduardo Dominicale

Member

Background

Eliane Aleixo Lustosa¹

Member - Independent member

Background

Background

Antônio M. Guimarães

Member

Olga Stankevicius Colpo

Vice-Chairwoman -Independent member

Background

Background

Ângela Annes Guimarães

Member

Background

Chairman

Regina Annes Guimarães

Member

Background

AuditCommittee

3 Monthly

Since: 2013

8 Quarterly

Since: 2012

Innovation and StrategyCommittee

Bimonthly

Since: 2019

Risk and Capital Management

Committee

8 Monthly

Since: 2018

Corporate Governance Committee

8 Quarterly

Since: 2019

Committees report directly to the Board of Directors

8

People & CompensationCommittee

Ricardo Annes Guimarães

+10 executive forums reporting directly to the Executive Officers

# of fixed members | 1 – Pending Central Bank approval

Dorival Dourado Jr.¹Member - Independent member

Background

Main Indicators

21

Financial Highlights (R$ Million) 1Q20 4Q19 3Q19 2Q19 1Q19 2019 2018

Net Income - Recurring1 97 74 88 84 99 344 258

ROAE - Recurring1 10.5% 9.6% 14.6% 14.1% 17.2% 12.5% 10.8%

ROAA - Recurring 2.0% 1.6% 2.0% 2.0% 2.4% 2.0% 1.6%

Basel Index 19.9% 22.5% 13.8% 13.6% 12.4% 22.5% 12.4%

Net Interest Margin - Recurring1 26.8% 26.6% 25.1% 23.2% 22.8% 22.5% 19.0%

Efficiency Ratio - Recurring1 56.3% 59.5% 53.7% 51.2% 51.7% 54.3% 52.1%

NPL4 – E-H Portfolio 5.9% 5.8% 5.6% 5.6% 6.0% 5.8% 6.6%

Coverage Ratio 107.0% 110.3% 110.6% 115.5% 114.9% 110.3% 111.0%

Net Income 76 163 66 62 77 367 171

Balance Sheet (R$ Million) 1Q20 4Q19 3Q19 2Q19 1Q19 2019 2018Total Credit Portfolio 11,718 11,455 10,814 10,261 9,853 11,455 9,513

Retail Portfolio6 9,928 9,667 9,032 8,548 8,206 9,667 7,866

Wholesale Portfolio7 1,664 1,625 1,573 1,430 1,314 1,625 1,215

Run-off Portfolio8 127 163 209 282 333 163 432

Total Assets 20,312 18,911 18,045 17,331 16,830 18,911 16,938

Shareholders’ Equity 3,968 4,028 2,733 2,700 2,673 4,028 2,640

Total Funding 13,705 12,409 13,246 12,723 12,234 12,409 12,354

1) Recurring Net Income and ROAE, excluding the effects of goodwill and other non-recurring events, see “Managerial Income Statement”.2) Methodology: Portfolio classified by E-H/Total Portfolio, including overdue plus falling due installments. 3) Methodology: Credit provision balance / operations overdue for more than 90 days (considering overdue installments plus falling due).4) The retail portfolio includes payroll credit card, payroll loan and personal credit.5) The wholesale portfolio includes structured Operations and companies.6) The run off portfolio includes the legacy payroll loan, Lendico, vehicles and home equity loan

Ratings

22

Agency Date Rating Perspective

Fitch April 2020

Local currency A (bra) Local: Negative

Foreign currency B+ IDR: Stable

Moody‘s March 2020

Local currency Baa1.br

Positive

Foreign currency B1

RISKbank January 2020 9.81Low Risk Medium

Term 1

Contact & Disclaimer

23

INVESTOR RELATIONS TEAM

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.