Institutional Presentation2Q19

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

• 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

Flavio Pentagna Guimarães Honorary ChairpersonAna Karina Bortoni Chairperson (IM)Ângela Guimarães MemberAntônio Mourão Guimarães Neto MemberJosé Eduardo Dominicale MemberOlga Colpo Member (IM)Regina Guimarães MemberRicardo Guimarães MemberTemporarily vacant Member (IM)

Banco Cifra

BMG Leasing

Banco BCV

99.99% 100.00% 100.00%

BMG Bank

Cayman

100.00%

CB Fácil Corretora

100.00%

BMG Participações em Negócios

BMG SegurosME

Promotora

BMG Soluções

Eletrônicas

94.50%

CMG Corretora de

Seguros

Cifra Financeira

80.00%

99.99%

99.74% 100.00%99.00%

Help Franchising

99.98%

65.00%

Granito

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

2.03Cross-selling IndexFull Digital

Banking

6

Client-centricityOne-Stop Shop and Client Lifecycle

Tech-enabled

Direct Debit Loan

Insurance Investments

Payroll Credit Card

Checking Account

Full Biometric Profile

DataAnalytics

ArtificialIntelligence

Omnichannel

3.8 mm Clients

2.0k Third-party bank correspondents

+58 NPS620Stores

InvestorSaver

Consumer &Precautionary

No-choice borrower

Traditional borrower

Partnerships

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

Banco BMG

Credit and Debit Card

DudaVirtual

specialist

Save for Me

62%73%

75% 74%

1%

3%

5%6%

1%

2%

3%4%

18%

15%

13%14%

18%7%

4%

2%

8,486 8,633

9,513

10,261

2016 2017 2018 1H19

Payroll Credit Card Direct Debit Loan U.S. Payroll Wholesale Portfolio Run off Total

Credit Portfolio

7

Retail64%

Retail

Retail83%

1 - Payroll loan, lendico, home equity and. vehicles

1

R$ Million

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%

Target - retirees, pensioners and public employees1

Endorsement of 5% to 10%2 of salary

Minimum installment directly discounted from

payroll

Important mean of payment

Stable and. predictable default rate

Main features

FAVORABLE REGULATORYENVIRONMENT

New Central Bank measures to

reduce bank spread strengthen

payroll credit card

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 the payroll credit card for

Social Security retirees and pensioners and

government employees

Payroll Credit Card

Competitive Advantages

ROBUST LEGISLATION

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%

Federal Government

risk1

7,3167,553

6,805 6,928 7,120

2Q18 3Q18 4Q18 1Q19 2Q19

Payroll Credit Card

9

82.5%

Portfolio Quality – E-H

R$ Million

Portfolio

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

4.3 4.65.3

5.7 5.7

2Q18 3Q18 4Q18 1Q19 2Q19

Interchange fees

R$ Million

3.9%3.3% 3.1% 3.0% 3.2%

3.9%3.3% 3.2% 3.2% 3.4%

2Q18 3Q18 4Q18 1Q19 2Q19

E-H portfolio E-H portfolio without insurance

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

UBER

NETFLIX

99main merchants where the

card is used

2

94%

Card Usage

DIGITAL INCLUSION

43% 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 with direct debit from the customer checking account aiming financial reintegration;

Maximum term12 months

358 400 447 532

612

21.1% 20.9% 20.7% 20.5% 20.4%

-30,0%

-20,0%

-10,0%

0,0%

10,0%

20,0%

-

100

200

300

400

500

600

700

800

900

2Q18 3Q18 4Q18 1Q19 2Q19

Portfolio Interest rate

28.5% 31.1% 32.9% 30.0% 27.4%

17.1% 17.1%20.3% 19.3% 16.8%

2Q18 3Q18 4Q18 1Q19 2Q19

E-H portfolio Overdue installments over 90 days

75% of Direct Debit clients have BMG Payroll Credit Card.

5.8% 5.6%6.7% 6.8% 7.4%

2Q18 3Q18 4Q18 1Q19 2Q19

E-H Portfolio

13.0% 14.9% 16.3%19.2% 21.5%

3.1% 3.6% 3.9% 4.7% 5.3%

2Q18 3Q18 4Q18 1Q19 2Q19

E-H Portfolio Overdue installments past 90

216

266 299358 383

56 66 7792 100

0

20

40

60

80

100

120

140

160

180

200

0

50

100

150

200

250

300

350

400

450

2Q18 3Q18 4Q18 1Q19 2Q19

Balance (R$) Balance (US$)

Other Portfolios

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 throughout 27 states;

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

R$ Million

11

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 2.8% of total portfolio.

520 479432

333282

2Q18 3Q18 4Q18 1Q19 2Q19

12

R$ Million

Partnership with Generali

BMG Card Credit Insurance

Average Ticket: R$ 100

Direct Debit Credit Insurance

Average Ticket: R$ 92

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

in BMG’s distribution network

Partnership with high cross-sell and up-sell potential

Mass Insurance

4944

48 47

57

2Q18 3Q18 4Q18 1Q19 2Q19

R$ 16 million in service revenue net of commission

expense;

Profit share of R$ 15 million;

Reduction of R$ 14 million in provision expenses;

Earnout after 2021.

80% of penetration in the

Direct Debit portfolio

31% of penetration in the Payroll Credit Card

portfolio

Sources of income – 1H19:

Life InsuranceAverage Ticket: R$ 31

Portfolio Penetration Issued Premiums Evolution

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

13

Means of Payment

Acquiring company focused on small business establishments located near help! stores and bank correspondents, thus forming

a complete retail ecosystem in Brazil

Microregion

Ecosystem

Bar

Beauty shopLocal shop

Gas station

Newstand Bakery

Construction store

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.

TPV (Total Payment Volume) ofR$ 590 milhões;

+11,000 active clients.

1H19 Highlights

Complete Biometric

Profile

Asset Light Omnichannel

Third-Party Bank Correspondents

2KCorrespondents

14KConsultants

620stores

One-Stop Shop

Digital Bank

User-friendly

Any time, anywhere, any device

+450Kaccounts opened

14

Long history of partnership with BMG

Points of SaleWhite Label

partnership with soccer clubs

Franchises network with culture of being fair with customers

1.2 new store per dayin 1H19

ONLY AND TRULY PHYGITAL

PHYSICAL DIGITAL

Full Digital Bank

15

Help on the clientonboarding

Offer voice recognition functions

Improve user experience

Allow interaction through voice or text

Investments“Save for me”

Payments

Credit Card

Phone Recharging

Duda

Full DigitalBanking

Based onWhatsApp, mostused app in Brazil

Machine Learning

Artificial intelligence

Checking Account

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.

658 686 747875

972

1.5%1.0%

1.5%2.3% 2.0%

0,0%

1,0%

2,0%

3,0%

4,0%

5,0%

6,0%

7,0%

8,0%

9,0%

10,0%

-

200

400

600

800

1.000

1.200

2Q18 3Q18 4Q18 1Q19 2Q19

Portfolio NPL (E-H portfolio)

537 507 469 439 45837.0% 35.2% 32.8%

25.5%

13.7%

0,0%

10,0%

20,0%

30,0%

40,0%

50,0%

60,0%

70,0%

80,0%

90,0%

-

100

200

300

400

500

600

700

800

900

2Q18 3Q18 4Q18 1Q19 2Q19

Portfolio NPL (E-H portfolio)

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.

Written Premiums: R$ 94 million

Retained Premiums: R$ 45 million

Net Income: R$ 0.2 million

BMG Seguros

Financial Highlights – 1H19

Diversified Funding

17

55%

71%77% 77%

23%

14%

13% 13%

12%

8%6% 5%

6%

5%3% 4%

4%

2%1% 1%

10,215

11,93912,354 12,723

2016 2017 2018 1H19

Deposits External Funding Credit Assignment + Securitization Financial Bills Other Total

Time deposits

43%

Time deposits

77%

+140k direct and indirect retail

investors

~50brokers and distributors$

1 – Considers CDB with the Market2 – Remaining average term

1 1

2 years and 3 monthsAverage term of

deposits 2

R$ Million

13.2%

15.7%

19.0%

22.3%

5.6%

9.7%

12.9%14.2%

2016 2017 2018 1H19

NIM NIM adjusted to cost of credit

+9.1 p.p.

+8.6 p.p.

% per year

18

Profitability

Margin Evolution

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

21

R$ Million

19

Capital

Shareholders’ Equity and Basel Ratio

48% 51% 52% 54% 56%

2.701 2.757 2.640 2.673 2.700

13.9% 13.1% 12.4% 12.4% 13.6%

13.9% 13.1% 12.4% 12.4% 13.6%

2Q18 3Q18 4Q18 1Q19 2Q19

Reference Equity Tier 1 Shareholders' Equity Basel Ratio Basel Ratio - Tier 1

+ 8p.p.

Capital qualityimprovement

R$ 124 million in Perpetual and Subordinated Financial Bills

13.9% Basel Ratio1

1 - R$ 86 million has already been authorized by BACEN and is comprised in the capital calculation. With the authorization of the remaining amount, Basel Ratio would be 13.9%.

20

Securitization

Securitization of payroll credit card – CBMG11

Positive performance in the secondary market

CDI+1.90% p.a.

CDI+0.68% p.a.

Yield reduction

BMG's improved credit risk andasset quality

• Public offer in terms of instruction CVM 476 • Amount issued: R$ 502 million• Term : 5 years• Rating: AA (Fitch)

Characteristics of the offer:(Sep/17)

Main Indicators

21

Financial Highlights (R$ Million) 2Q19 1Q19 4Q18 3Q18 2Q18

Net Income - Recurring1 84 99 61 77 67

Net Income 62 77 40 55 45

ROAE - Recurring1 14.1% 17.2% 10.4% 13.1% 11.7%

ROAE 9.5% 12.1% 6.0% 8.3% 6.9%

ROAA 1.5% 1.8% 0.9% 1.3% 1.1%

Basel Index 13.6% 12.4% 12.4% 13.1% 13.9%

Net Interest Margin 23.3% 22.7% 22.6% 20.2% 19.8%

Efficiency Ratio 49.8% 50.6% 45.6% 54.3% 52.3%

NPL2 – E-H Portfolio 5.6% 6.0% 6.6% 6.7% 7.2%

NPL3 – Overdue installments 3.3% 3.6% 3.9% 3.9% 4.5%

Balance Sheet (R$ Million) 2Q19 1Q19 4Q18 3Q18 2Q18

Total Credit Portfolio 10,261 9,853 9,513 9,265 9,096

Retail Portfolio4 8,548 8,206 7,866 7,593 7,380

Wholesale Portfolio5 1,430 1,314 1,215 1,193 1,196

Run-off Portfolio 6 282 333 432 479 520

Total Assets 17,331 16,830 16,938 16,959 16,170

Shareholders’ Equity 2,700 2,673 2,640 2,757 2,701

Total Funding 12,723 12,234 12,354 12,489 11,852

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 - Wholesale portfolio includes structured operations and companies6 - The run off portfolio includes the payroll loan, Lendico, vehicles and home equity loan.

Ratings

22

Agency Date Rating Perspective

FITCH January 2019

Local currency A- (bra)

Stable

Foreign currency B+

Moody‘s March 2019

Local currency Baa2.br

Stable

Foreign currency B1

RISKbank July 2019 9.82Low Risk Medium

Term 2

23

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.