Banco BMG S A : Dados Econômico-Financeiros

Banco BMG S.A.

Individual and consolidated interim financial statements on September 30, 2022, and independent auditor's review report

on the interim financial statements

DocuSign Envelope ID: 8D7BEDEB-1CC2-4D1D-B5D4-FDDEFD9B050F

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(A free translation ofthe original in Portuguese)

Report on review ofparent company and consolidated interim financial statements

To the Board of Directors and Stockholders

Banco BMGS.A.

Introduction

We have reviewed the accompanying interim balance sheet of Banco BMGS.A. ("Bank") as at September 30, 2022 and the related statements of income, comprehensive income, changes in equity and cash flows for the nine-month period then ended, as well as the accompanying consolidated interim balance sheet of Banco BMGS.A. and its subsidiaries ("Consolidated") as at September 30, 2022 and the related consolidated statements of income, comprehensive income, changes in equity and cash flows for the nine-month period then ended, and a summary of significant accounting policies and other explanatory notes.

Management is responsible for the preparation and fair presentation of these parent company and consolidated interim financial statements in accordance with accounting practices adopted in Brazil applicable to financial institutions authorized to operate by the Brazilian Central Bank (BACEN).

Our responsibility is to express a conclusion on these interim financial statements based on our review.

Scope of review

We conducted our review in accordance with Brazilian and International Standards on Reviews of Interim Financial Information (NBC TR 2410 - "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" and ISRE 2410 - "Review of Interim Financial Information Performed by the Independent Auditor of the Entity", respectively). A review of interim information consists ofmaking inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Brazilian and International Standards on Auditing and consequently did not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying parent company and consolidated interim financial statements referred to above do not present fairly, in all material respects, the financial position ofBanco BMGS.A. and ofBanco BMGS.A. and its subsidiaries as at September 30, 2022, and the parent company financial performance and its cash flows for the nine-month period then ended, as well as the consolidated financial performance and the consolidated cash flows for the nine-month period then ended, in accordance with accounting practices adopted in Brazil applicable to institutions authorized to operate by BACEN.

PricewaterhouseCoopers Auditores Independentes Ltda., Avenida Brigadeiro Faria Lima, 3732, Edificio B32, 162 Sao Paulo, SP, Brasil, 04538-132

T: [phone], www.pwc.com.br

DocuSign Envelope ID: 8D7BEDEB-1CC2-4D1D-B5D4-FDDEFD9B050F

pwc

BancoBMG S.A

Emphasis ofmatter

In 2020, following a search and seizure operation mandated by the 2nd Federal Criminal Court of Sao Paulo, theBMG Financial GroupBoard of Directors formed a Special Committee to investigate possible irregularities (Note 28(c)). No evidence has been identified to-date by the Special Committee to corroborate the alleged illegal acts, including money laundering and corruption, being addressed in the investigation currently being conducted by the authorities. Management is unable to determine, at this time, whether the results of the investigations and developments therefrom may affect future financial statements of theBank. Our report is not qualified in respect of this matter.

Other matters

Statements ofValue Added

The interim financial statements referred to above include the parent company and consolidated Statements ofValue Added for the nine-month period ended September 30, 2022. These statements are the responsibility of theBank's management and are presented as supplementary information for the purposes ofBACEN. These statements have been subjected to review procedures performed together with the review of the interim financial statements for the purpose of concluding whether they are reconciled with the interim financial statements and accounting records, as applicable, and if their form and content are in accordance with the criteria defined in the accounting standard CPC 09 - "Statement ofValue Added".Based on our review, nothing has come to our attention that causes us to believe that these Statements ofValue Added have not been properly prepared, in all material respects, in accordance with the criteria established in this accounting standard, and consistent with the parent company and consolidated interim financial statements taken as a whole.

Sao Paulo, November 10, 2022

,✓�PricewaterhouseCoopers� Auditores Independentes Ltda.

CRC 2SP000160/O-5

Index
Management Report ...................................................................................................................................................................	1
Fiscal Council Opinion ..................................................................................................................................................	5
Balance sheet ...............................................................................................................................................................	6
Statement of income .....................................................................................................................................................	8
Comprehensive result ...................................................................................................................................................	9
Statement of changes in equity ..................................................................................................................................	10
Statement of cash flows..............................................................................................................................................	11
Statement of value added...........................................................................................................................................	12
Operations ...........................................................................................................................................................	13
Presentation of quarterly information and main accounting policies ...................................................................	13
Capital requirements and investment limits.........................................................................................................	21
Available Cash and interbank investments .........................................................................................................	22
Interbank investments and interbank deposits ....................................................................................................	22
Marketable securities and derivatives .................................................................................................................	23
Derivative financial instruments...........................................................................................................................	26
Credit operations .................................................................................................................................................	29
Other receivables ................................................................................................................................................	34
Other assets....................................................................................................................................................	35
Investments.....................................................................................................................................................	36
Property and Equipment .................................................................................................................................	39
Intangible assets .............................................................................................................................................	40
Deposits and open market funding - own portfolio .........................................................................................	41
Funds from acceptance and issue of securities .............................................................................................	42
Borrowings and onlendings ............................................................................................................................	42
Provisions, tax liabilities and other liabilities ...................................................................................................	43
Contingent assets and liabilities and legal obligations - Tax and social security ...........................................	45
Equity (Bank) ..................................................................................................................................................	47
Financial intermediation income (expenses) ..................................................................................................	49
Income from services rendered ......................................................................................................................	50
Personnel expenses and other administrative expenses ...............................................................................	50
Tax expenses..................................................................................................................................................	51
Other operating income and expenses...........................................................................................................	51
Income tax and social contribution on net income..........................................................................................	52
Related party transactions (Bank) ..................................................................................................................	54
Fair value estimate..........................................................................................................................................	56
Other Information ............................................................................................................................................	57
Risk management ...........................................................................................................................................	59
STATEMENT OF THE DIRECTORS ABOUT THE INTERIM FINANCIAL STATEMENTS
CHIEF EXECUTIVE OFFICER AND INVESTOR RELATIONS OFFICER

MANAGEMENT REPORT

The Management of Banco Bmg S.A. and its subsidiaries ("Bank"), in accordance with the legal and statutory provisions applicable to financial institutions authorized to operate by the Central Bank of Brazil, is presenting the Interim Financial Statements for period ended September 30, 2022 along with the independent auditors' report.

Banco Bmg

We're a complete bank! Our commitment is focused on people and their needs, so we continue to build a modern, agile, technological and, above all, human bank.

We are PHYGITAL: we act in a complementary manner on physical and digital channels, uniting the technology of the digital world with the human sensitivity of the physical world. Thus, we approach both more traditional clients, driven by the eye-to-eye relationship, and clients more open to innovation and change.

All this has positively impacted our product portfolio over the years. We went from a niche segment to meet the needs of millions of Brazilians and companies by expanding our portfolio of products and services. Our main activity verticals are: Retail Individual, Retail Company, Wholesale and Asset Management. This allows us to remain firm in our mission: to popularize financial services in Brazil.

Financial Performance

The financial margin totaled R$ 2,878 million in the first nine months of 2022, representing an increase of 3.6% in comparison to the same period of the previous year. In 3Q22, the margin reached R$ 961 million, a reduction of 0.9% compared to 2Q22. The financial margin adjusted to the cost of credit (provision and commission expenses) totaled R$ 1,560 million in the first nine months of 2022, representing a decrease of 4.6% in comparison with the same period of the previous year. In 3Q22, the adjusted margin reached R$ 510 million, a reduction of 4.3% compared to 2Q22. Credit revenue has been the main driver for the financial margin, due to the growth of the total credit portfolio, mainly: (i) by the growth of the payroll loan that was driven by the release of the LOAS benefit (Organic Social Assistance Law) for eligibility to payroll products, expanding the public within the INSS; (ii) the launch of the benefit payroll card for the INSS that took place in the last days of September; and (iii) the repricing of the eligible INSS credit card portfolio with the increase in the maximum interest rate to 3.06% per month in Jan/22. In this quarter, the slight reduction in the margin compared to 2Q22 was due to the increase in the interest rate curve (Selic) and the temporary mismatch of IPCA rates between the Bank's assets and liabilities.

		Financial Margin (R$ million)
					2,777	2,878
909	901	946	970	961
					1,636	1,560
523	503	517	533	510
3Q21	4Q21	1Q22	2Q22	3Q22	9M21	9M22

1	2
NIM		NIM adjusted to the cost of credit

1 - interest income + revenue from services rendered.

2 - interest financial margin after expenses with net provision for recovery and expenses with agent fees + revenue from services rendered. Based on the recurring result.

In the first nine months of 2022, the efficiency ratio was 67.4%, an increase of 4.0 p.p. compared to the same period in 2021. In 3Q22, the efficiency ratio reached 66.5%, a reduction of 4.1 p.p. compared to 2Q22. As part of the modernization process for the transformation of the Bank and implementation of the PHYGITAL strategy, Bmg invested in the development of internal projects linked to its businesses, especially in digitalization, quality and new products. As a result, the Bank oxygenated its staff and invested in hiring new talents, ramped up its marketing investments, contracted systems and brought in consultancy and service providers to assist in specific projects. In the last quarters, the increase in expenses is also associated with the strong increase in credit origination.

Banco Bmg S.A. and its subsidiaries - Interim Financial Statements Report

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