CONFERENCE CALLPRESENTATION

2Q20

1

2*PHYSICAL + DIGITAL

Digital or Traditional?We've put that difference behind.

We connected the twoworlds.

An agile bank that is technological and replete with advantages, focused on clients’ needs.

It's time to extrapolate the Phygitalstrategy*.

Expand our target audience, present a portfolio of products and services relevant to millions of

Brazilians.

TRANSFORMATION AND

MODERNIZATION

3

CLIENTS PARTNERS EMPLOYEES

• Rapid adaptation in how to relate with clients

✓ Remote service

✓ Digital formalization

• Clients more likely to enter the digital world

• Anticipation of the PHYGITAL strategy

✓ Maintaining the help! growth strategy

✓ Launch of corban and franchisee app

✓ Alignment of incentives for opening phygital accounts

• Full home office work model until the end of the year and partial as of 2021

• Agile work methodology and investment in T&D

• Fertile environment for innovation

4

CLIENT CENTRICITY

+19%

Active clients’ evolution(million)

+3.6 thousand clients per business day

in 2Q20

GROWTH

1

1 – Clients with a balance in the portfolio or card issuance/ purchases in the last 12 months

Consignable

Open-waters

Retail Companies

49% of

new clients

51% of

new clients

• Small and micro companies

• Banking needs for businesses and employees

• Familiarized with the banking correspondent and franchisee –starting the journey physically

• High familiarity with the digital world

Credit borrower

• Granitobecame acquirer

• Launch of company digital bank

63 years

R$ 2,300/month

Hybrid profile

38 years

B and C social classes

3.8 3.94.1 4.3

4.5

2Q19 3Q19 4Q19 1Q20 2Q20

5

CLIENT CENTRICITY

DIGITAL PROPENSION

WhatsApp Registration(thousand)

Increase in the use of payroll

credit card for

purchases in digital

services

FINANCIAL EDUCATION

46% of customers did not

save before signing up BMG's

virtual piggy bank,

Poupa pra Mim

BMG held a

100% digital Hackaton with the

challenge of seeking solutions to bring

financial education to clients

Volta pra Mim

cashback program on

debit and credit card

13111

205333

601

2Q19 3Q19 4Q19 1Q20 2Q20

6

PHYGITAL

PHYSICAL

+194%

Record opening of

accounts in the quarter

84% of the current

public prefer face-to-

face service

DIGITAL

Rapid reaction to social isolation

remote sales reached 76% in Jun/20

Direct Debit Loan, was 100% physical, now operates 54% remotely

Payroll credit card

Payroll loan

Direct debit loan

R$ million – average month origination face-to-faceremote

43% 56% 54%

56

30 37

48

80% 82% 82% 83%

297 292 288 319

thousand

462611

8341,038

1,356

2Q19 3Q19 4Q19 1Q20 2Q20

50%61% 68% 71%

76

218 232 245

1Q20 Apr/20 May/20 Jun/20

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RISKS AND COSTSMANAGEMENT

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ASSETS STRUCUTURE

WHOLESALERETAIL

Structured operations:

• guarantee of the flow of receivables

• anticipation of receivables from commissions: renegotiation of 1.4% of the portfolio

• anticipation of television rights: renegotiation of 22.6% of the portfolio due to the adjustment of payment flows in view of the change in the match schedule for the Brazilian national championship tournament

Companies:

• Mostly based on collateral and renegotiation of 5.6% of the portfolio

Payroll Credit Cardand Loan

Direct Debit Loan

9,013

835

72.1%

6.7%

R$ MM % Total

US Payroll 733 5.9%

StructuredOperations

Companies

1,232

581

9.9%

4.7%

R$ MM % Total

86% federal risk (INSS and Siape)

58% receive their benefit through BMG

Low-turnover civil servants

INSS Normative Instruction 107

• raise the limit for the payroll credit card to 1.6x the monthly benefit

• grace period of up to 90 days (only for payroll loans)

• period for granting credit to 30 days after the beginning of the benefit

Self-Regulation (effective from Oct/20)

• Withdrawal operations up to 70% of the limit of the card

• Prohibition of withdrawal formalization through telephone

• Signing of a Consent Form

+ more robust product | + transparency | + safety

Payroll Credit Card

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RISK MANAGEMENT

• R$ 3.7 billion total cash

• Positive gap with the duration of liabilities longer than the assets by 4 months

• Receipt of credit installments has been performing normally

• Renewal of liabilities, stimulating supply via distributors

• Assignment agreement with retention of risks for payroll loans up to R$ 3 billion

BACEN measures generate additional liquidity

o LFG: R$ 3.0 billion limit | R$ 820 million issued

o NDPGE: R$ 2.0 billion limit | R$ 886 million issued

• Comfortable capital level with Basel in 19.8%, sufficient for growth plan and stress scenario

• Quality: 96% of Main Capital

• Bacen limited the payment of interest on shareholders' equity (ISE) and dividends to the mandatory minimum for the 2020 fiscal year

• BMG’ Bylaws: 25% minimum payout

• Strategy to maximize the payment of ISE, given its tax benefit

FundingR$ billion

41%

25%

2019 1H20

ISE Provision% net income

CAPITALLIQUIDITY

12.4 12.8 14.4

12.413.7

15.4

4Q19 1Q20 2Q20

Market funding Subsidiaries

10

OPERATIONAL EFFICIENCY

COST MANAGEMENT

• Holistic view of processes

• Automation

• Cost culture

1Q20 2Q20

ZBB Target Accomplished

-4% -7%savings

EFFICIENCY INDEX(%)

MASS CIVIL LAWSUITS

Acting at the root cause

80% of origination with digital

formalization in Jun/20

Meritocratic alignment with the

sales channels

Reduction in the

pace of expenses

growth

61

90 92 84 88

2Q19 3Q19 4Q19 1Q20 2Q20

Net operating provision expensesR$ Million

51.2% 53.7%59.5%

56.3%

48.7%

2Q19 3Q19 4Q19 1Q20 2Q20

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MAIN

INDICATORS AND PRODUCTS

12

2Q20 HIGHLIGHTS

RECURRING NET INCOME

R$ 101 million

+20% (2Q20x2Q19)

INTEREST MARGIN

28.8% p.a.

+5.6p.p (2Q20x2Q19)

INTEREST MARGIN

R$ 1,007 million

+48% (2Q20x2Q19)

RETAIL LOAN PORTFOLIO

R$ 10.6 billion

+24% (2Q20x2Q19)

RECURRING ROAE

10,7% p.a.

-3,4p.p. (2Q20x2Q19)

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MARGIN EVOLUTION

Interest margin evolution (% p.a.)

1 - interest income + revenue from services rendered / average profitable assets2 - interest financial margin after expenses with net provision for recovery and expenses with agent fees + revenue from services rendered / average profitable assetsBased on the recurring result.

2Qx2Q

+0.8 p.p.

2Qx1Q

+2.0 p.p.+2.5 p.p.

+3.4 p.p.

1 2

23.2%25.1% 26.6% 26.8%

28.8%

14.1% 15.5% 16.5% 16.8% 17.6%

2Q19 3Q19 4Q19 1Q20 2Q20

NIM NIM adjusted to the cost of credit

3.2% 3.1% 3.3% 3.3% 3.4%

3.4% 3.4% 3.6% 3.7% 4.0%

2Q19 3Q19 4Q19 1Q20 2Q20

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BEST CREDIT CARD

1 - Methodology: E-H portfolio / total portfolio | 2 - Management view without mass insurance

of penetration of

mass insurance

in the portfolio

45%Interchangefee

+12%(2Qx2Q) (31% 2Q19)

PAYROLL CREDIT CARD

80% Revolving in purchases

Growth or purchases in

digital services

Portfolio evolution(R$ million)

NPL evolution(% over 90 days)

2Qx2Q

+8.2%

Accounting Simulation without insurance1 2

7,553 7,754 7,993 8,114 8,174

3.4% 3.4% 3.4% 3.3% 3.1%

2Q19 3Q19 4Q19 1Q20 2Q20Credit portfolio Interest rate % p.m.

15

PAYROLL LOAN

1 - partnership with a securitization company. Through it, the Bank undertakes to assign without substantial risk and benefits retention up to a limit of R$ 1.5 billion in payroll loan operations with INSS retirees and pensioners

Partnership securitization1

Loan origination(R$ million)

88

391

230

695

Sep/19 4Q19 1Q20 2Q20

Loan portfolio

R$ 838 millionin Jun/20

179281

254

786

1,500

4Q19 1Q20 2Q20 Availablelimit

Total limit

Assignment result2 8 8

- 2 3 Service

78% | 22%INSS Federal

Interest rate: 1.8% p.m. Credit Assignment

R$ million

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PERSONAL LOAN

1 - Methodology: E-H portfolio / total portfolio

DIRECT DEBIT LOAN

of portfolio58%

Portfolio evolution(R$ million)

NPL evolution(% over 90 days)

2Qx2Q

+36.5%

1

Receive benefits at BMG vs. 43% in 2Q19 vs. 54% in 2Q19

of origination61% Active open credit cards

+330 Thousand

27 32 39 45 55

612 685 778 855 835

20.4% 20.3% 20.4% 20.4% 20.3%

2Q19 3Q19 4Q19 1Q20 2Q20Traditional Credit Card Direct Debit LoanInterest rate % p.m.

27.4% 28.5% 28.8% 27.6%30.8%

2Q19 3Q19 4Q19 1Q20 2Q20

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MASS INSURANCE

Sources of income (1H20)

R$ 62 mm in revenue in 1H20

(vs. R$ 45 million in 1H19)

R$ 19 million in net service

revenue 1

R$ 6 million in profit share

R$ 36 million

reduction inprovisionexpenses

+ +

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

Issued premiums evolution(R$ million)

57 54 59 6280

2Q19 3Q19 4Q19 1Q20 2Q20

40%60%

99.99%

Sale of 40% of CMG Corretora

Offer insurance products in line with BMG’s Phygital

strategy

✓ Leverage the sales of insurance products already

sold by the CMG✓ Add new products and

technology for customer needs and BMG

relationship channels

WIZ PARTNERSHIP

profitshare

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DEAL BMG & WIZ

GOVERNANCE STRUCTUREDEAL DETAILS

• Wiz have a call option for an additional acquisition of up to 9% of CMG for R$ 20 million, according to precedent conditions

• Concession of exclusivity between Banco BMG and CMG, for 20 years, for the sale of security products1

22.444.8

22.415.0 15.0

15.0

45.0

1st Upfront

Installment

(Closing)

2nd Upfront

Installment

(Closing + 6m)

1st Earn-Out

(2022)

2nd Earn-Out

(2023)

3rd Earn-Out

(2024)

Total Payment

89.8

Estimated Earn-outs(Trigger 70%/150% of Target Net Income)

2022R$19.7 mm

2023 R$23.5 mm

2021R$9.4 mm

FIXED PAYMENT

ESTIMATED EARN-OUT

R$ million

Target Net Income

• CMG base valuation: R$ 224.4 million

• Base purchase price of 40% of the shares: R$89.8 million

• Form of payment:

CEO

Marketing and Technology

Director

Commercial Director

• Management Board: There will be no Board in CMG’s governance structure. The company will be managed by the board, with the exception of specific matters designated for the deliberation of partners.

• Commercial strategy committee: responsible for approving campaigns and remuneration policies and is composed of executives from Banco BMG

• Board of Directors:

Planning Manager

BMG has the right to veto the choice of the CEO and to remove the board in the event of poor performance.

1 – Respects the exclusivity terms already agreed with Generali

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KEY TAKEAWAYS

record growth of the

client base and new

accounts in 2Q20

expansion of the client base accelerates

growth of the digital bank

launch of the digital bank for

companies, strengthening the acquiring

business

features for the digital bank are increasing the bank's client

stickiness

greater share of non-credit

revenues in the result, especially

deriving from insurance

current structure is highly scalable

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Investor Relations

ri@bancobmg.com.br

www.bancobmg.com.br/IR