INSTITUTIONALPRESENTATION
4Q20
2
Bmg
Products and Strategy
Corporate Governance
Ratings
Agenda
3
Track record in innovation
Digital or Traditional?We left that difference behind.
We connect the two worlds
Our mission:
popularize financial services in Brazil
Precursor of third-party
correspondent banks
channel
JVwith
Payroll Credit Card
Franchise
Distribution
channel
Asset light
Owner’s view
Digital Bank
Pioneering
Absolute
leader
Payroll Loan
User friendly
Artificial
Intelligence
PHYGITAL strategy
Extrapolate the
PHYGITAL
strategy
(Physical + Digital)
Products and
services for millions
of Brazilians and
companies
Complete Bank
113258
344 3815.1% 10.8% 12.5% 9.7%
15.7% 12.4% 22.5% 17.8%
-100,0%
-80,0%
-60,0%
-40,0%
-20,0%
0,0%
20,0%
-20104070100130160190220250280310340370400430460490520550580610640670700
2017 2018 2019 2020
Recurring net income Recurring ROAE (%) Basel (%)
15.7%19.0%
22.5% 22.9%
9.7% 12.9% 14.4% 14.4%
2017 2018 2019 2020
NIM NIM ajusted to the cost of credit
6,711 7,866 9,66712,0741,293
1,2151,625
1,853
628 432163
80
8,632 9,51311,455
14,006
2017 2018 2019 2020Retail Wholesale Run off Column1
Active clients
3.03.5
4.1
5.2
2017 2018 2019 2020
Credit portfolio R$ MillionMillion
Net interest margin Recurring results% p.a. R$ Million and % p.a.
+25%
Growth with profitability
+28%
4
WE AREA
155mm
small and micro companies
17 mm
Brazilians over 18 years
+48mm
retirees and civil servants
general satisfaction with the digital bank
services1
of active clients+29% in 12 months 8.45.2
mm
1 – Survey with our customers conducted between Dec/20 and Jan/21 by Bmg with the support of Instituto Bridge
• Modern
• Client-centric
• Digital bank with the human sensibility of the physical world
• For millions of Brazilians and companies
5
Individual
Retail Companies
Physical channel Client already starts with a credit product
and with 100% digitalized
formalization
Correspondent
sales counter
Digital Native
COMPLETEDIGITAL
BANK
Client source by channelRevenue (ARPU)
Digital Channel
PHYSICAL CHANNELS
DIGITALNATIVE
Legal entity employee Payroll services
PHYGITAL performance in the complete retail ecosystem
6
help! tech-touch model
7
Franchise network, specializing in financial services, with a
one-stop shop concept and tech-touch performance model
The essence of help! is technology
Provide strong security on the face-to-face and remote origination
Number of stores evolution
EFFICIENT AND SCALABLE
Indicator based on the quarterly evolution of origination of the direct debit loan product.
Evolution of origination per consultant(base100)
Number of consultants per store
100127 149
190 222
Q1 Q3 Q6 Q9 Q12
185 stores
transferred in
2020, being
109 in 4T20360 328 328 298 197
442 494 494 535 666
802 822 822 833 863
4Q19 1Q20 2Q20 3Q20 4Q20
CBFácil Other Franchisees
7
2.7 2.7 2.62.9 3.0
Q1 Q3 Q6 Q9 Q12
Evolutions of Digital Bank
End-to-end
Support
Onboarding
100% via
Duda
Launch of
Volta pra
Mim
(cashback)
Salary
Portability
Conversion
of Bmg Card
App
Withdraw
via QR
Code
Launch of
digital bank
for companies
Marketplace of
credit
partnership with
New
experience
marketplace
of products2020
Parterships
with apps
with debit
purchases
Referral
program:
Indicou,
Ganhou
PIX20182019
Launch of
App
White label
with Soccer
teams
Poupa
pra
Mim
Inclusion of
products and
improvements
Bmg Chip
88
Consolidated Digital Bank
Monthly Active Users(‘000)
770 798 1,019
1,480
2,261
Dec19 Mar20 Jun20 Sep20 Dec20
LTM: +194%2.6 mm of digital
accounts
New clients per business day(‘000)
2.5 3.25.1
7.6
12.4
2019 1Q20 2Q20 3Q20 4Q20
+4.9x
+8 mm of access in Dec/20
Digital accounts profile
Consignable
Soccer clubs
Open-waters
Passion for soccer: Greater loyalty and credit quality
High profitability: client is born with a credit product
Growth the base
Focus for next years:
Increase cross-selling in the digital bank
Complete value proposition based on the concept of a positive account
Monetize
52%
39%
9%
2.6 mm
9
Digital Bank Experience
POSITIVE ACCOUNT
+1.9x volume of credit
purchases(4Qx3Q)
+1.8x volume of debit
purchases(4Qx3Q)
Transactions in the Digital Bank
Poupa pra Mim+3.6x
Clients registered in the virtual piggy bank
(4Qx3Q)
Volta pra Mim+3.4x
of cashback in the debit and credit cards
to the clients (4Qx3Q)
Marketplace+200
Partner storesIndividual
Retail Company
Personal Credit
Investments
Payroll Credit
Multiple Card
Digital Account
PayrollServices
Means ofPayment Insurance
Working capital
VALUE PROPOSAL: INCREASING ACTIVATION AND LOYALTY
PRODUCTS AND SERVICES: PROFITABILITY
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▪ 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
Main features
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%
Recent changes
11
▪ On March 17, the CNPS reduced the maximum INSS rate to 2.7% p.m. from 3.0% p.m.
▪ Impacted revenues as of April/20
▪ On July 22, the INSS raise the limit for the payroll credit card to 1.6x the monthly benefit
ROBUSTLEGISLATION
Self-Regulation (effective since Oct/20)
▪ Withdrawal operations up to 70% of the limit of the card
▪ Prohibition of withdrawal formalization through telephone
▪ Signing of a Consent Form
INSS
Payroll Credit Card
1990 2003 2005 2015
Law 8.112Payroll loan for
federal government employees
Law 10.820/03Payroll 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
7,993 8,114 8,1748,370
8,140
4Q19 1Q20 2Q20 3Q20 4Q20
3.3% 3.3% 3.4% 3.8% 3.7%
3.6% 3.7% 4.0%4.5% 4.5%
4Q19 1Q20 2Q20 3Q20 4Q20
E-H Portfolio E-H Portfolio - Without Insurance
12
Payroll Credit Card
Credit Portfolio
Interest Rate: 3.1% p.m.
Portfolio Evolution (R$ million)
NPL Evolution
Average monthly release amount³ (R$ million)
82% 83% 86% 100%
297 300 340236
1Q20 2Q20 3Q20 4Q20
Physical formalization Digitalized formalization
• Important means of payment and digital inclusion
• 4.4 million of payroll credit cards
• 20% growth in interchange fees
• 58% penetration of credit insurance in the portfolio
Federal Risk¹85.7%
1 –Social Security (INSS) + federal government employees | 2 – Management view without the loss of the lender insurance | 3 – It considers only the new resource released to the client, it does not consider refinanced amounts.
²
Main Characteristics
301 269
838 1,035
1,853
4Q19 1Q20 2Q20 3Q20 4Q20
50%
67%79%
92%76
232 254
328
1Q20 2Q20 3Q20 4Q20
Payroll Loan
13
Credit Portfolio
Average monthly release amount¹ (R$ million)
14% SIAPE
86% INSS
Assignment to the securitization company in the amount of R$ 165 mm in the 4Q20
14% SIAPE
86% INSS
Physical formalization Digitalized formalization
Origination
Interest Rate: 1.8% p.m.
Portfolio Evolution (R$ million)
1 – It considers only the new resource released to the client, it does not consider refinanced amounts.
• Higher efficiency when collecting installments
• Lower default rates
• Greater potential of loyalty
100%100% 100% 100%
56 38
55 57
1Q20 2Q20 3Q20 4Q20
14
Credit Portfolio
Personal LoanDirect Debit Loan + Traditional Credit Card
Digitalized Formalization
• +442 thousand active traditional credit cards
• 60% of the portfolio receive their benefit at Bmg
Main Characteristics
Average monthly release amount¹ (R$ million)
Interest Rate: 20.2% p.m.
Portfolio Evolution (R$ million)
39 45 55 66 83
778 855 835 868 895
4Q19 1Q20 2Q20 3Q20 4Q20
Traditional Credit Card Direct Debit Loan
NPL Evolution
28.8% 27.6% 30.8% 30.9% 30.1%
4Q19 1Q20 2Q20 3Q20 4Q20
E-H Portfolio
1 – It considers only the new resource released to the client, it does not consider refinanced amounts.
Retail Insurance
STRONG GROWTH IN RETAIL INSURANCE
Issued premiums evolution(Quarterly AverageR$ million)
54 62 80
109 98
2019 1Q20 2Q20 3Q20 4Q20
+80%
Mass insurance penetration in the credit portfolios
75% 51% 10%direct debit loan payroll credit card payroll loan
STRATEGIC PILLARS
high penetration potential
Commercial performance
Promote the growth of current products, with a structure of intelligence and technology
New products strategy
Accelerated growth of new products unattached to credit in the physical and digital channels
Corporate solutions
Expansion of the performance and offer of Corporate insurance, with technical support from Wiz's specialized team
Financial efficiency
Capture financial opportunities in organizational processes
Performance in channels not yet explored, such as digital and call center
New channels
15
Means of Payment
273
753
1Q19 4Q20
Total Payment Volume(Quarterly average - R$ million)
2.8x
Paymentlink
Wallet
CheckoutAPI
HardwarelessSolution
New not-present capture
products: unlock our digital
channel bringing solutions
for companies and
individual clients
NEW PRODUCTS AND CHANNELS
Financial highlights7,000 Bmg
clients
+43%27,000 Granitoclients
1,600 Bmg
clients
38,000 Granitoclients
+328%
3Q20 4Q20
STRATEGIC PILLAR: complete banking services for commercial establishments and their
employees
exclusivity of banking domicileon the Granito sales channel
(+450 consultants)
+31,000 current clients to
explore
23
200
1Q19 4Q20
8.7x
Valuation(R$ million)
16
1,101 1,138 1,232 1,257 1,341
1.9% 1.7% 1.6% 1.5%2.3%
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
1.000
1.200
1.400
1.600
4Q19 1Q20 2Q20 3Q20 4Q20
Portfolio NPL (E-H Portfolio)
524 526 492446
512
12.8% 12.6% 13.4% 11.1%6.1%
0
100
200
300
400
500
600
700
800
900
4Q19 1Q20 2Q20 3Q20 4Q20
Portfolio NPL (E-H Portfolio)
Structured Operations
Structured operations for banking
correspondents and franchisees (commissions)
and soccer clubs (television rights), with
collateral that mitigates the issuers' risks.
✓Issued Premiums: R$ 216 million
✓Retained Premiums: R$ 135 million
✓Equity Equivalence to Bmg: R$ 6.5
million
Created in July, 2016, and controlled by Banco Bmg, the company focused
on the Surety Bond Segment
Financial Highlights – 2020
Since November 2019, Generali holds 30% of interest in Bmg Seguros
R$ Million
Wholesale Portfolio
Companies
R$ Million
Portfolio composed by the financing and of
structured financial services for medium and
large companies, focusing on products with
low capital.
17
22.8% 22.3% 21.8% 22.3% 16.7%
4Q19 1Q20 2Q20 3Q20 4Q20E-H Portfolio
7.5%9.9% 10.5%
8.1% 6.5%
4Q19 1Q20 2Q20 3Q20 4Q20E-H Portfolio
595 690 733863 974
148 133 134 153 187
0
200
400
600
800
1000
1200
4Q19 1Q20 2Q20 3Q20 4Q20
Balance (R$) Balance (US$)
▪ Bmg Money is an independent company that operates in the UnitedStates with focus on payroll loan for the public sector employees inlower turnover activities: hospital, school, police and firefighters;
▪ The operation is reflected in Bmg through participation agreementsamong BMG Money and Bmg Bank (Cayman).
Run-off Portfolio
163127
103 83 80
4Q19 1Q20 2Q20 3Q20 4Q20
▪ Banco Bmg has the following run-off portfolios: payroll loan,Lendico, home equity and vehicle financing;
▪ Represents 0.6% of total portfolio.
R$ Million / US$ Million
U.S. Payroll Loan
R$ Million
Other Portfolios
NPL Evolution
Credit Portfolio
NPL Evolution
Credit Portfolio
18
• Positive gap with the duration on liabilities longer than the assets by 3 months
• Reinforcement of the securities market for natural IPCA hedge
• R$ 1.3 billion of securitization for issuance of debenture linked to the payroll credit card. Initially absorbed by Bmg
• LFG: R$ 2.8 billion issued
o NDPGE: R$ 1.6 billion issued
R$ Million
Market Funding Breakdown
Funding Evolution Asset & Liability Management
Diversified Funding Structure
2.5
3.74.3
4.9
1Q20 2Q20 3Q20 4Q20
Total cash evolution(R$ billion)
19
Time Deposit68.4%Financial Bills
19.1%
Credit Assignment and Securitization
10.5%
Other2.0%
12,381 12,673 14,360 15,65618,019
12,40913,705
15,41216,708
19,081
4Q19 1Q20 2Q20 3Q20 4Q20
Market funding Subsidiaries
70% 69% 72% 72% 73%
4,028 3,968 4,036 4,062 4,128
22.5% 19.9% 19.8% 19.2% 17.8%
4Q19 1Q20 2Q20 3Q20 4Q20
Main Capital Shareholders' Equity Basel Ratio
• Comfortable capital level with Basel in 17.8% and of quality with 96% in Main Capital
• Bacen limited the maximum dividend to 30% for 2020 fiscal year
• Strategy to maximize the payment of ISE, given its tax benefit
41%32%1
2019 2020
PayoutISE /accounting net income
Capital Management
1 – considers the declared ISE/ accounting net income. According to the dividend methodology of the Lei das SAs, the indicator would be 28.5%, considering the net ISE/ net profit after legal reserve
R$ Million
+3p.p.
Capital quality improvement
Shareholders’ Equity and Basel Ratio
Capital
20
Corporate Structure
Shareholders % Common % Preffered % Total
Guimarães Family 99.4% 43.7% 81.3%
Treasury stock - 1.9% 0.6%
Minority shareholders 0.6% 54.4% 18.1%
Number of shares (million) 400 191 591
Banco CifraBMG
LeasingBanco BCV
99.99% 100.00% 100.00%
BMG Bank Cayman
100.00%
CB Fácil Corretora
45.00%
BMG Participações em
Negócios
BMG SegurosME
PromotoraBMG Soluções
Eletrônicas
99.99%
BMG Corretora de
SegurosGranito
80.00%
99.99%
99.38% 70.00%60.00%
Help Franchising
99.98%
100.00%
Cifra Financeira
Shareholding Composition
Corporate Governance
21
Consolidated companies Companies recognized by the equity equivalence method
Corporate Governance
Board of Directors with Complementary Experience & Skill Set
Background
Dorival Dourado Jr.
Background
Antônio M. Guimarães
Vice-Chairwoman –Independent Member
BackgroundBackground
Chairman
Manuela Vaz ArtigasMember – Independent Member
Background
Member – Independent Member
Member
Background
Member
Background
Member
Background
Member
Independent Members
Audit
Committee
3
Monthly
Since : 2013
Bimonthly
Since : 2012
Innovation & Strategy
Committee
Bimonthly
Since : 2019
Risk and Capital Management
Committee
Monthly
Since : 2018
Corporate Governance Committee
Bimonthly
Since: 2019
9
People and Compensation
Committee
IndependentMembers
5 Committees report to the Board of Directors
Fiscal
Council
Installed at Ordinary General Meeting of
2020
3 Sitting Members
3 Alternate Members
Voting Members,of which
2 independent
8 Voting Members,of which
1 independent
8 Voting Members,of which
1 independent
8 Voting Members,of which
1 independent
Executive Forums
Reporting to the Board
13 Executive Forums
The committees and forums have Boards and Executive members
Special Committee
5 Members, of which
3 independent
Ad hocInstalled in the Board
meeting
22
Ricardo Annes Guimarães Olga Stankevicius Colpo
José Eduardo DominicaleÂngela Annes GuimarãesRegina Annes Guimarães
Agencies Date Rating Perspective
Fitch Ratings April 2020Local Currency A (bra) National: Negative
Foreign Currency B+ IDR: Stable
Moody‘s May 2020Local Currency Baa1.Br
StableForeign Currency B1
RISKbank February 2021Low Risk for Medium
Term 2In monitoring
Ratings
23
Main Indicators
1. Recurring Indicators, excluding the effects of goodwill and other non-recurring events, see “Managerial Income Statement”. | 2.Refers to the Banking Product, composed of the financialinterest margin and income from services rendered. | 3. Recurring net financial margin / average revenue generating assets and annualized exponentiation | 4. Personnel Expenses + OtherAdministrative Expenses (doesn't consider amortization) + Other Operating Expenses (net from operating income) / Gross Profit from Financial Intermediation before allowance for loanlosses + Income from Services Rendered + Tax Expenses | 5. Portfolio classified by E-H/Total Portfolio, including overdue plus falling due installments. | 6. Credit provision balance /operations overdue for more than 90 days (considering overdue installments plus falling due). | 7. Clients with a balance in the portfolio or card issuance/ purchases in the last 12 months. |8.The retail portfolio includes payroll credit card, payroll loan, personal credit and retail companies. | 9. The wholesale portfolio includes structured Operations and companies. | 10. The run-off portfolio includes the legacy payroll loan, Lendico, vehicles and home equity loan. | 11. Cash and cash equivalents plus government securities accounted for in marketable securities,excluding transactions subject to buyback with a corresponding entry to liabilities. 24
Financial Highlights (R$ Million) 4Q20 3Q20 2Q20 1Q20 4Q19 2020 2019Net Income - Recurring1 96 87 101 97 74 381 344 ROAE - Recurring1 9.9% 9.1% 10.7% 10.5% 9.6% 9.7% 12.5%ROAA - Recurring1 1.5% 1.5% 1.9% 2.0% 1.6% 1.7% 2.0%Net Interest Margin - Recurring1, 2 960 950 1,007 864 839 3,781 2,940Net Interest Margin - Recurring1, 3 22.0% 24.3% 28.8% 26.8% 26.6% 22.9% 22.5%Efficiency Ratio - Recurring1, 4 60.3% 52.3% 48.7% 56.3% 59.5% 54.2% 54.3%NPL5 – E-H Portfolio 5.7% 5.8% 5.9% 5.9% 5.8% 5.7% 5.8%Coverage Ratio6 107.9% 117.6% 113.2% 107.0% 110.3% 107.9% 110.3%Basel Index 17.8% 19.2% 19.8% 19.9% 22.5% 17.8% 22.5%Number of active clients7 (million) 5.2 4.8 4.5 4.3 4.1 5.2 4.1 Digital accounts (million) 2.6 1.9 1.4 1.0 0.8 2.6 0.8
help! stores 863 833 822 822 802 863 802
Net Income - Accounting 76 97 81 76 163 329 367
Balance Sheet (R$ Million) 4Q20 3Q20 2Q20 1Q20 4Q19 2020 2019Total Credit Portfolio 14,006 13,064 12,497 11,718 11,455 14,006 11,455
Retail Portfolio8 12,074 11,278 10,670 9,928 9,667 12,074 9,667Wholesale Portfolio9 1,853 1,704 1,724 1,664 1,625 1,853 1,625Run-off Portfolio10 80 83 103 127 163 80 163
Total Cash11 4,894 4,346 3,718 2,508 2,917 4,894 2,917Total Assets 28,234 25,123 22,528 20,312 18,911 28,234 18,911Shareholders’ Equity 4,128 4,062 4,036 3,968 4,028 4,128 4,028Market Funding 19,081 15,656 14,360 12,673 12,381 19,081 12,381
INVESTOR RELATIONS TEAM
www.bancobmg.com.br/IR
"This presentation may include estimates and forward-looking statements. Such forward-looking statements are based in large part on current expectationsand projections about future events and financial trends that affect or could affect Banco Bmg business. Many important factors could adversely affect BancoBmg results as discussed in these forward-looking statements and estimates. These factors include, but are not limited to: the domestic and internationaleconomic environment, fiscal, exchange and monetary policies, Banco Bmg ability to obtain funding for its operations and changes in Central Bank regulations.
The words "believes," "can," "may," "aims," "estimates," "continues," "anticipates," "intends," "expects," and other similar words are intended to identifyestimates and projections. Forward-looking statements and estimates include information regarding results and projections, strategy, competitive position,industry environment, growth opportunities, the effects of future regulation and the effects of competition. Such estimates and projections speak only as of thedate they are expressed, and we undertake no obligation to publicly update or revise any such estimates due to new information, future events or any otherfactors. Because of the risks and uncertainties described herein, the forward-looking statements in this presentation may not materialize. In view of theselimitations, it should not make any investment decisions based on the forward-looking statements contained in this presentation.
Contact & Disclaimer
25