InstitutionalPresentation2Q18

2

Agenda

• Historic

• Corporate Governance

• Products

• Funding

• Rating

3

Historic

2012

• Jul - BMG and ItaúUnibanco form a joint venture to create a new bank focused on Payroll Loan (JV)

• Nov - BMG improves its governance structure

1998

• Beginning of Payroll Loan operations–BMG starts to focus on payroll loan for public employees

2011

• Banco BMG acquires 100% of Banco GE Money shares in Brazil (current Banco Cifra) and of Banco Schahin (current BCV)

1980’s

• BMG Leasing positioned as the market leader in the vehicle leasing segment

1930

• GuimarãesFamily created the Banco de Minas Gerais, focused on individual and corporate credit

2005

• BMG started operating in the Payroll Credit Card

2015

• Sep - BMG started operating the Payroll Credit Card in the INSS (Social Security)

2016

• Jan - Launch of a new distribution channel, the “help! loja de crédito”, a franchise network

• Jun - Creation of BMG Seguros, focused on surety bond market

• Oct – BMG and Generali sign a 20-year partnership for exclusive distribution of insurance products

• Dec – BMG concludes the sale of its participation in the JV to Itaú

2002

• BMG is the first bank to structure a fully distributed ABS fund

2017

• Apr – Mr. Bernard Mencier is the new chairman of Banco BMG's Board of Directors and Ms. Olga was elected as the 3rd independent member

• Sep - Launch of the fixed income platform, BMG Invest Digital

• Sep - Marco Antunes takes over as Managing Director and Flavio Guimarães Neto as CFO

4

Corporate Structure

Ownership Breakdown Board of Directors

Shareholders # shares %Flávio Pentagna Guimarães 9,801 38.9%

BMG Participações S/A 7,774 30.9%

Regina Annes Guimarães 1,641 6.5%

Ricardo Annes Guimarães 1,641 6.5%

João Annes Guimarães 1,641 6.5%

Ângela Annes Guimarães 1,641 6.5%

Outros 1,030 4.2%

Total 25,169 100.0%

Board of Directors PositionBernard Mencier President (IM)Ângela Guimarães CounselorFlavio Guimarães Neto CounselorJosé Eduardo Dominicale CounselorJoão Guimarães CounselorOlga Colpo Counselor (IM)Regina Guimarães CounselorRoberto Faldini Counselor (IM)

*IM: Independent Member

Monthly meetings of the Board of Directors.99.6% owned by Pentagna Guimarães Family.

Main Committees

♦ Executive Committee and the Officers Meeting: strategicand tactical meetings on a weekly basis;

♦ Audit Committee: composed entirely of independentdirectors, the committee meets monthly;

♦ ALCO – Assets and Liabilities Committee: decision-making character committee, for best practices meetsweekly;

♦ Disclosure Committee: aiming to ensure transparencyand quality of information, the committee meets at leastquarterly;

♦ BMG also has six other internal committees that assist theExecutive Board in its activities.

Corporate Governance

5

Banco BMG

Total Assets: R$ 16,170 million

Shareholders’ Equity: R$ 2,701 million

Net Income 1H18: R$ 76 million

Recurring Net Income 1H18: R$ 120 million

ROAE 1H18: 5.9% p.a.

Recurring ROAE 1H18: 10.5% p.a.

Net Interest Margin 1H18: 15.8% p.a.

Basel Ratio: 13.9%

♦ Bank with private capital belonging to theGuimarães Family and with 88 years of a solidhistory in the financial market;

♦ Retail products: payroll credit card (BMG Card).Direct Debt Loan. both exclusive to Social Security(INSS) retirees and pensioners and public servants.and digital personal credit (Lendico);

♦ Wholesale products: structured financial services.derivatives instruments and surety bond insurance(BMG Seguros) for medium and large companies.

06/30/2018

% of TotalPortfolio

BalanceR$ Million

R$/US$ 3.8558 as of June 30, 2018

Payroll CreditCard

StructuredOperations

Direct Debt Loan

Run Off

6,805

658

358

9,096

7,540

360

BMG Money

Lendico

CompaniesR

eta

il

216

160

Wh

ole

sale

537

74.8%

7.2%

3.9%

82.9%

4.0%

2.4%

1.8%

5.9%

6

Payroll Credit Card

Credit Portfolio

R$ Million

Characteristics

Regulated by Law 13.172 which allows the exclusivemargin of 5% for the Social Security and federal servers;

International card with the benefits of the traditionalcard and attractive rates. will remain as an exclusiveproduct of BMG and has a great growth potential;

Minimum monthly payment discounted directly from thepayroll;

Average Interest Rate: 46.8% p.a. (origination) /49.7%p.a. (portfolio);

79.4% is concentrated on Social Security (INSS) retireesand pensioners.

Credit Card x Loan

Credit Card1 Loan2

Strategy: growth perspective of the portfolio at BMG

2Q18

49.7% 25.0%

3.9% 2.3%

(1) BMG’s Payroll Credit Card portfolio/ (2) Payroll Loan outstanding in the market – Source: BACEN.

Portfolio Quality

interest rate (% p.a.)

NPL over90

commission

funding cost

net interest margin

+21.7%

+4.4%

R$/US$ 3.8558 as of June 30, 2018

5,826 6,073 6,321 6,5206,805

2Q17 3Q17 4Q17 1Q18 2Q18

3.7% 3.6% 3.7% 3.7% 3.9%

2Q17 3Q17 4Q17 1Q18 2Q18

E-H Portfolio

7

Personal Credit

BMG MoneyDirect Debt Loan

Launched on Jan/16. is a personal credit. direct debt loanaiming in financial reinclusion;

Exclusive for Social Security (INSS) retirees andpensioners and public employees;

Maximum Term: 12 months.

Credit PortfolioCredit Portfolio R$ Million/ % p.m. R$ Million

R$/US$ 3.8558 as of June 30, 2018

Since 2009, the shareholders of Banco BMG hold themajority stake of BMG Money, a fully licensed consumerfinance company with a focus on payroll loans to publicsector employees, with presence in 17 American states;

This operation is reflected in BMG through participationagreements celebrated with BMG Bank (Cayman).

171 211 250303

358

21.8% 21.7% 21.2% 20.7% 20.5%

-10,0%

-5,0%

0,0%

5,0%

10,0%

15,0%

20,0%

25,0%

0

100

200

300

400

500

600

2Q17 3Q17 4Q17 1Q18 2Q18

credit portfolio interest rate

28.6% 32.0% 32.9% 29.8% 28.5%

15.2%19.0% 20.2% 18.3% 17.1%

2Q17 3Q17 4Q17 1Q18 2Q18

E-H Portfolio Overdue Installments over90

116 126 140158

216

2Q17 3Q17 4Q17 1Q18 2Q18

5.2% 4.5%5.8% 5.5% 5.8%

2Q17 3Q17 4Q17 1Q18 2Q18

E-H Portfolio

8

Distribution Channel

BMG’s Branches

help! stores(franchises + own)Call centers

ATMInternet bankingApp

Distribution Channel franchise network

Formalization

MultibanksThird-party Correspondents

Multibanks Third-party Correspondents

~3,000 BMG agreed correspondents throughout Brazil;

Multibank stores, without exclusivity with BMG;

Main channel for origination of consignment products.

Network of credit franchise, focused on the retailsegments of Social Security (INSS) retirees andpensioners and public employees;

Designed to be a multi-services solution (one stopshop);

Offer greater security for the operation and allowscloser relationship with the client;

387 stores strategically located at points of easyaccess and high circulation of target customers.

Formalization through the complete biometric profile,integrated to the operating system:

Fingerprint reader

Facial biometry

Electronic signature

padPinpad Scanner

Voice recorder

Bar code reader

BMG Empresas

9

Companies – Portfolio R$ MillionStructured Operations – Portfolio R$ Million

Companies – NPL %Structured Operations – NPL %

R$/US$ 3.8558 as of June 30, 2018

+3.4%

+62.1%

-41.3%

-16.1%406

465537

637 658

2Q17 3Q17 4Q17 1Q18 2Q18

3.8% 3.1%2.5%

1.8%1.5%

0.7% 0.5% 0.4%0.2% 0.1%

2.6%

1.8% 1.5%1.3% 1.0%

2Q17 3Q17 4Q17 1Q18 2Q18

E-H PortfolioOverdue Installments over90E-H Portfolio (ex-100% provisioned)

916 828 756641

537

18.9% 21.0% 21.3% 20.1%24.7%

2Q17 3Q17 4Q17 1Q18 2Q18Credit Portfolio Provision/ Portfolio

26.5%29.8% 30.6% 30.9% 37.0%

6.7% 8.7% 8.2% 11.0%18.1%19.3%

20.8% 20.9%25.4% 26.5%

2Q17 3Q17 4Q17 1Q18 2Q18

E-H PortfolioOverdue Installments over90E-H Portfolio (ex-100% provisioned)

10

BMG Seguros

Created in July 2016. the insurance company focusesexclusively on the surety bond segment.

Company owned by Banco BMG;

Highly experienced market professionals;

Target audience: Corporate & Large-Corporate;

Same credit police of Banco BMG;

Main modalities: Bid Bond. Performance Bond.

Judicial Guarantee. Payment Guarantee.

June 2018

Accumulated Insured Amount: R$ 7,813 million

Accumulated Written Premiums: R$ 179 million

Written Premiums 1H18: R$ 44 million

Net Income 1H18: R$ 0.8 million

Financial Highlights

BMG Seguros

Accumulated Insured Amount

Quarterly Written Premiums

R$ Million

R$ Million

R$/US$ 3.8558 as of June 30, 2018

25 25 22

18

27

7 7 5

9

4

2Q17 3Q17 4Q17 1Q18 2Q18

Written Premiuns Retained Premiuns

2.523

4.202 5.017

7.097 7.813

29 41 50 62 58

2Q17 3Q17 4Q17 1Q18 2Q18Insured Amount Insured Amount Retained

2,457

1,368

776 457 386 327

1Q15 4Q15 4Q16 4Q17 1Q18 2Q18

1,108

678

21 14 10

1Q16 4Q16 4Q17 1Q18 2Q18

45

38

27 25 24

4Q15 4Q16 4Q17 1Q18 2Q18

31.1% 30.2%17.6%

5.8% 4.8% 4.0%

1Q15 4Q15 4Q16 4Q17 1Q18 2Q18

Run Off Portfolio11

Run Off Portfolio

Vehicles Portfolio R$ MillionPayroll Loan Portfolio R$ Million

Run Off Portfolio Evolution % Total PortfolioHome Equity Loan Portfolio R$ Million

Tru

e s

ale

ass

ign

me

nt

Runoff

pay

roll

loan

Runoff

veh

icle

s

Veh

icle

s tr

ue

sale

R$/US$ 3.8558 as of June 30, 2018

-92.8%-99.2%

-15.2%-32.5%

-48.0% -42.6 p.p.

-5.7%

12

Portfolio Quality

Methodology :Overdue Installments: Installments overdue more than 90 days /Total Portfolio.E-H Portfolio: Portfolio classified by E-H/Total Portfolio, including overdue plus falling due installments.

NPL 2Q18 1Q182Q/1Q

(%)2Q17

2Q/2Q

(%)

E-H Portfolio 266 241 10.4% 217 22.6%

Total Portfolio 6,805 6,520 4.4% 5,826 16.8%

Payroll Credit Card 3.9% 3.7% 0.2 p.p 3.7% 0.2 p.p

E-H Portfolio 136 115 18.6% 61 124.3%

Total Portfolio 735 602 22.1% 369 99.2%

Personal Credit 18.5% 19.1% -0.6 p.p 16.5% 2.0 p.p

E-H Portfolio 209 210 -0.3% 258 -19.0%

Total Portfolio 1,196 1,278 -6.4% 1,322 -9.5%

BMG Empresas 17.5% 16.4% 1.1 p.p 19.5% -2.0 p.p

E-H Portfolio 46 53 -12.5% 90 -48.7%

Total Portfolio 360 425 -15.2% 669 -46.1%

Run off 12.8% 12.4% 0.4 p.p 13.5% -0.7 p.p

E-H Portfolio 657 618 6.4% 626 5.0%

Total Portfolio 9,096 8,824 3.1% 8,185 11.1%

Total Portfolio NPL 7.2% 7.0% 0.2 p.p 7.6% -0.4 p.p

NPL – E-H Portfolio

NPL – Overdue Installments NPL – E-H Portfolio

R$/US$ 3.8558 as of June 30, 2018

7.6% 7.7% 7.6% 7.0% 7.2%

2Q17 3Q17 4Q17 1Q18 2Q18

Total Portfolio

3.9% 4.1% 4.0% 4.0% 4.5%

2Q17 3Q17 4Q17 1Q18 2Q18

Total Portfolio

13

06/30/2018

% TotalFunding

BalanceR$ Million

R$/US$ 3.8558 as of June 30, 2018

Diversified Funding

Reflecting the Bank's efforts to spread the funding base,

the number of funding clients increased 22.5% in the last

twelve months.

BMG aims to diversify the funding through BMG Invest, a

fixed income platform geared towards individuals and

companies, helping broaden the number of clients in the

Bank's funding base.

BMG completed in the 3Q17 the issue of the first public

securitization of its payroll credit card amounting to

R$ 502 million over a five-year term. The securitization

was accomplished through a "Real Guarantee" Debenture

pursuant to CVM Instruction 476.

BMG launched BMG Invest Digital, through which it is

possible to open accounts 100% digitally via the website

or app. The platform provides the market with secure,

cost-effective and easy-to-access investment solutions

with a wide range of fixed income products tailored to

each investor's profile.

External Funding

Deposits

Credit Assignment

LetrasFinanceiras

Other

Time Deposit

DPGE

Interbank Deposit

Securitization

13.8%

73.5%

3.3%

3.6%

1,630

8,716

385

421

8,542174

1

1.5%195

11,852

4.3%504

14

External Funding

External Funding

(USD Milhões) TypeNotional

IssuedYield (p.a.) Principal Payment Final Maturity

Outstanding2Q18

BMG 14 Senior 300 6.5% Bullet 03/14/2014 -BMG 16 Senior 300 9.15% Amortizing 01/15/2016 -BCV 16 Subordinated 50 8.68% Bullet 11/21/2016 -BMG 17 Senior 150 9.625% Bullet 03/27/2017 -BMG 18 Senior 300 8.00% Amortizing 04/15/2018 -BMG 19 Subordinated 300 9.95% Bullet 11/05/2019 247 BMG 20 Subordinated 250 8.875% Bullet 08/05/2020 165 Total 850 412

Price Evolution

Maturities: For the next twelve months no principal amounts will mature.

Graph updated until 08/08/2018

50

60

70

80

90

100

110

BMG19 BMG20

15

Ratings

Agencies Date Rating Perspective

FITCH

RatingsMay 2018

Local Currency A-

(bra)Negative

Foreign Currency B+

Moody‘s July 2018

Local Currency

Baa3.brNegative

Foreign Currency B1

RISKbank July 2018 9.79Low Risk for Short

Term 1

16

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.