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INVESTORS REPORTTHIRD QUARTER, 2019

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IMAE(1) (QoQ variation annualized, %) Balance of Payments (last year, million USD)

COSTA RICA: ECONOMIC ACTIVITY

(1) IMAE stands for Índice Mensual de Actividad Económica, it is a gauge of economic

activity computed by the Central Bank

5.59

-7.31

0.86

3.91 3.614.96

-11.99

0.24

3.52

0.34

-14.0

-12.0

-10.0

-8.0

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

II-2018 III-2018 IV-2018 I-2019 II-2019

Total Ex ZF

-3,000

-2,000

-1,000

0

1,000

2,000

3,000

4,000

IV-2018 I-2019 II-2019 III-2019

Current account Goods an services Financial account FDI

3 of 26

Juntos somos

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Consumer Price index (CPI) Unemployment

COSTA RICA: INFLATION AND UNEMPLOYMENT

Source: Banco Central de Costa Rica e Instituto Nacional de Estadística y Censos (INEC)

2.12

2.52

-0.5

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

III-2018 IV-2018 I-2019 II-2019 III-2019

QoQ (annualized) YoY

8.70

10.20

12.00

11.3011.90

II-2018 III-2018 IV-2018 I-2019 II-2019

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Progreso

Central government: revenues and expenditures ( last year, million CRC) Central Government Deficit / GDP (%)

COSTA RICA: FISCAL PERFORMANCE

Central Government Debt/ GDP (%)

Source: Costa Rica Ministry of Finance

-4,000,000

-2,000,000

0

2,000,000

4,000,000

6,000,000

8,000,000

Oct-

18

Nov-1

8

Dec-1

8

Ja

n-1

9

Fe

b-1

9

Ma

r-1

9

Ap

r-1

9

Ma

y-1

9

Ju

n-1

9

Ju

l-1

9

Au

g-1

9

Se

p-1

9

CG revenues CG expenditures Result

6.0 6.3

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

Sep-18 Sep-19

44.849.0

10.5 10.7

0.0

10.0

20.0

30.0

40.0

50.0

60.0

Sep-18 Sep-19

Internal Debt External Debt

5 of 26

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Tasa básica pasiva Average exchange rate USDCRC (Monex)

COSTA RICA: INTEREST AND EXCHANGE RATES

Source: Banco Central de Costa Rica

5.70

4.0

4.5

5.0

5.5

6.0

6.5

7.0

Sep-18 Dec-18 Mar-19 Jun-19 Sep-19

580.11

530.0

540.0

550.0

560.0

570.0

580.0

590.0

600.0

610.0

620.0

630.0

Sep-18 Dec-18 Mar-19 Jun-19 Sep-19

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Quarterly growth (3Q 2019) Year growth (3Q 2019)

BANK SYSTEM: CREDIT (GROSS)

-1.0

3.0

2.1

0.3

-2.1

1.3

0.4

BNCR

Other

Cooperatives and mutuals

Special purpose

Government banks (exBNCR)

Private banks

System

-3.5

11.2

2.6

1.2

-3.9

1.7

0.4

BNCR

Other

Cooperatives and mutuals

Special purpose

Government banks (exBNCR)

Private banks

System

7 of 26

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Quarterly growth (3Q 2019)

BANK SYSTEM: DEPOSITSYear growth (3Q 2019)

0.8

4.9

-0.8

0.3

0.9

0.4

0.6

BNCR

Other

Cooperatives and mutuals

Special purpose

Government banks (exBNCR)

Private banks

System

7.3

18.0

5.0

13.9

2.9

5.0

6.1

BNCR

Other

Cooperatives and mutuals

Special purpose

Government banks (exBNCR)

Private banks

System

8 of 26

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Governance Structure

CORPORATE GOVERNANCE

Board of Directors

Chairman

Jeannette Ruíz Delgado

Vice-chairman

Ruth Alfaro Jara

Directors

Chief Executive Officer

Internal and external independent auditors

Officers and Support Committees

Gustavo Vargas Fernández

Independent Board of Directors

100% independent

• Appointed by the Counsel of Ministers.

• 8-year term.

• Every 4 years, 3 or 4 members change.

Secretary

Rodolfo González Cuadra

Ana Isabel Solano Brenes

Marvin Arias Aguilar

Victor Hugo Carranza

Mario Carazo Zeledón

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CORPORATE GOVERNANCE (CONT.)

BANCO NACIONAL DE COSTA RICA

BN Valores

(Brokerage)

Assets (Sept-19)

BN Vital

(Pensions)

BN SFl

(Mutual funds)

BN Seguros

(Insurance

brokerage)

BNCR owns a 49% stake in BICSA

Total assets and equity of BNCR Group amount CRC

7,080,464 million and equity CRC 717,053 million (excluding

BICSA)

Equity (Sept-19)

BNCR; 79.5

BN Valores; 2.1

BN SAFI; 1.0

BN Vital; 1.0

BN Seguros; 0.6 BICSA; 15.9

BNCR; 85.0

BN Valores; 0.8

BN SAFI; 0.1

BN Vital; 0.1

BN Seguros; 0.1

BICSA; 13.9

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BNCR: INVESTMENT HIGHLIGHTS (3Q 2019)

(1) Cost of risk: annualized provisions for loan loses on average gross loans.

(2) After allowances for impairment and recovery of assets and decrease in allowances

(3) Administrative expenditure on gross operational income.

(4) Regulatory Capital Adequacy Ratio

Net income CRC 5,374 million ↗ 8% QoQ ↗ 94% YoY

ROAE 3.18 % ↘ 32 b.p QoQ ↗ 146 b.p YoY

ROAA 0.31 % ↘ 3 b.p QoQ ↗ 15 b.p YoY

Loan portfolio CRC 4,339,444 million ↘ 1.00% QoQ ↘ 3.51% YoY

Provisions CRC 9,118 million ↘ 48.87% QoQ ↘ 59.35% YoY

Cost of risk(1) 0.84 % ↘ 77 b.p QoQ ↘ 116.7 b.p YoY

Net Financial income CRC 59,101 million ↗ 23.09% QoQ ↗ 40.27% YoY

NIM 4.88 % ↗ 6.5 b.p QoQ ↗ 22 b.p YoY

NIM neto (2) 4.37 % ↗ 77 b.p QoQ ↗ 125 b.p YoY

Efficiency Efficiency ratio (3) 62.48 % ↘ 205 b.p QoQ ↗ 59 b.p YoY

Capital ISP(4) 13.38 % ↗ 12 b.p QoQ ↗ 21 b.p YoY

Profitability

Credit

NII and NIM

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Assets (million CRC) Liabilities and Equity (million CRC)

BNCR (STAND-ALONE): BALANCE SHEET BREAKDOWN

III-2018 II-2019 III-2019

Cash and due frombanks Investments Loan portfolio Others assets

6,951,786

63.9 62.163.1

18.016.715.615.215.817.5

7,038,371 6,987,940

CRC; 66.2

Foreign currency; 33.8

III-2018 II-2019 III-2019

Equity Others Obligations with entities Dep. público

7,038,371

67.6 73.173.4

9.59.714.9

6,951,786 6,987,940

CRC; 66.3

Foreign currency; 33.7

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Portfolio composition (%) Loan portfolio by currency (%)

BNCR (STAND-ALONE): LOAN PORFOLIOLoan portfolio gross (million CRC)

4,497,3674,521,147

4,451,009

4,383,1304,339,444

4,200,000

4,400,000

4,600,000

III-2018 IV-2018 I-2019 II-2019 III-2019

III-2018 IV-2018 I-2019 II-2019 III-2019

Corporate Retail Enterprises Development

16.9 17.117.0 16.8

42.141.3

16.7

42.641.6

28.628.529.029.5

42.8

28.3

III-2018 IV-2018 I-2019 II-2019 III-2019

CRC Foreign currency

31.233.3 30.032.3

70.068.867.766.7

29.0

71.0

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BNCR (STAND-ALONE): LOAN PORTFOLIO

Contribution to portfolio growth QoQ (million CRC)

Contribution to portfolio growth YoY (million CRC)

4,383,130 8,479 97 22,104 713 12,525 1,194 4,339,444

II-2019 Consumer Mortgages Corporate Enterprises Development Exchange rate III-2019

4,497,367 11,231 12,701 94,244 25,149 32,187 7,8134,339,444

III-2018 Consumer Mortgages Corporate Enterprises Development Exchange rate III-2019

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BNCR (STAND-ALONE): LOAN PORTFOLIO BY SEGMENT

Crédito

MM de CRC III-2018 II-2019 III-2019 Trimestral Interanual Trimestral Interanual

Corporativo 1,327,123 1,251,490 1,228,756 28.3 -1.8 -7.4 -2.3 -9.7

Desarrollo

Empresarial 552,660 525,329 525,777 12.1 0.1 -4.9 -0.4 -7.2

SME 758,437 738,271 725,656 16.7 -1.7 -4.3 -2.2 -6.7

Personas

Hipotecas 1,293,956 1,305,876 1,305,621 30.1 0.0 0.9 -0.5 -1.6

Tarjetas 130,249 128,846 126,237 2.9 -2.0 -3.1 -2.5 -5.5

Consumo 434,942 433,318 427,398 9.8 -1.4 -1.7 -1.9 -4.2

Total 4,497,367 4,383,130 4,339,444 100 -1.0 -3.5 -1.5 -5.9

Trimestre

% Part. 2T 2019

% cambio nominal % cambio real

29.5

28.6

28.3

12.3

12.0

12.1

16.9

16.8

16.7

28.8

29.8

30.1

9.7

9.9

9.8

2.9

2.9

2.9

III-2018

II-2019

III-2019

Corporate Enterprises Development Mortgages Consumer Credit cards

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Progreso

BNCR (STAND-ALONE): LOAN PORTFOLIO BY SEGMENT

83.9 84.9

16.1 15.1

III-2018 III-2019

Credit cards

CRC USD

85.2 86.8

14.8 13.2

III-2018 III-2019

Mortgages

CRC USD

84.4 86.3

15.6 13.7

III-2018 III-2019

Development

CRC USD

39.3 44.1

60.7 55.9

III-2018 III-2019

Corporate

CRC USD

90.7 92.1

9.3 7.9

III-2018 III-2019

Consumer

CRC USD

41.9 45.4

58.1 54.6

III-2018 III-2019

Enterprises

CRC USD

Loans

million CRC III-2018 II-2019 III-2019 ∆ QoQ (%) ∆ YoY (%) III-2018 II-2019 III-2019 ∆ QoQ (%) ∆ YoY (%)

Corporate 522,029 551,930 564,335 2.2 8.1 805,095 699,559 664,421 -5.2 -17.0

Development

Enterprises 231,608 238,340 246,389 3.3 6.4 321,051 286,989 279,389 -2.6 -12.4

SME 640,305 637,301 629,879 -1.2 -1.6 118,132 100,970 95,777 -5.3 -18.4

Personas

Mortgages 1,103,032 1,133,527 1,138,573 0.4 3.2 190,924 172,349 167,047 -3.1 -12.0

Credit cards 109,220 109,403 106,589 -2.6 -2.4 21,029 19,442 19,648 1.2 -6.0

Consumer 394,611 399,278 394,658 -1.2 0.0 40,332 34,040 32,739 -3.9 -18.3

Total 3,000,805 3,069,780 3,080,423 0.3 2.7 1,496,562 1,313,350 1,259,021 -4.0 -15.4

Local currency (million CRC) Foreign currency (million de CRC)

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BNCR (STAND-ALONE): ASSET QUALITYNPLs1 percentage of the loan portfolio (gross)

Coverage ratio2

(1) NPL: credits more delay 90 days

(2) Allowances for loan impairments over NPLs

2.6

4.2 4.3

3.33.0 3.2 3.2

0.0

1.0

2.0

3.0

4.0

5.0

I-2018 II-2018 III-2018 IV-2018 I-2019 II-2019 III-2019

138.1

88.2 95.596.0 99.9 96.3 89.9

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

I-2018 II-2018 III-2018 IV-2018 I-2019 II-2019 III-2019

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BNCR (STAND-ALONE): LOAN-TO-DEPOSIT RATIO

91.6

93.1

94.5

91.9

89.0

85.985.0

89.089.9

92.2

97.5

91.6 88.086.3

97.1100.4

99.4

81.983.7

81.481.9

70.0

75.0

80.0

85.0

90.0

95.0

100.0

105.0

I-2018 II-2018 III-2018 IV-2018 I-2019 II-2019 III-2019

Total CRC USD

18 of 26

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By product By currency

BNCR (STAND-ALONE): FUNDING STRUCTURE

CRC Foreign currency

III-2018 II-2019 III-2019

Obligations with public Demand obligations with entities

FCD Term obligations with entities

Bonds and subord. Obligations

6,213,323 6,101,242

76.683.683.6

16.9 10.811.1

6,109,729

94.4

Obligations with public

Demand obligations with entities

FCD

Term obligations with entities

Bonds and subord. Obligations

66.0

4.5

25.2

Obligations with public

Demand obligations with entities

FCD

Term obligations with entities

Bonds and subord. Obligations

III-2018 II-2019 III-2019

CRC USD

6,213,323 6,101,242

56.9 61.960.5

43.1 38.139.5

6,109,729

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Structure of deposits Deposits and average cost (CRC)

BNCR (STAND-ALONE): DEPOSIT BREAKDOWN

Deposits and average cost (other)

III-2018 II-2019 III-2019

Current account Savings deposits Term obligations with the public Other

4,629,476 4,922,151

27.1 27.325.6

28.7 27.127.9

43.944.942.4

4,963,380

III-2018 II-2019 III-2019

CRC USD

68.0 69.167.2

32.0 30.932.8

972,475845,743

1,548,283

61,293

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

0

400,000

800,000

1,200,000

1,600,000

2,000,000

Current account Savings deposits Term obligationswith the public

Other deposits

659

865

1,088

35

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

0

200

400

600

800

1,000

1,200

Current account Savings deposits Term obligationswith the public

Other deposits

20 of 26

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BNCR: OUTSTANDING DEBTSecurity Issue date Maturity

Initial term

(years)Currency

Issued amount

(million)

Outstanding

amountInterest rate

BNCR4B 20-set-2017 20-set-2019 2 CRC 20,000 MM 14,175 8.09%

BNRC4C 06-oct-2017 06-oct-2020 3 CRC 20,000 MM 11,601 8.39%

BNRC4D 12/02/2019 12/08/2020 1.5 CRC 20,000 MM 20,000 9.10%

BNRC5A 21/01/2019 21/01/2022 3 CRC 35,000 MM 35,000 10.03%

BNRC5B 29/01/2019 29/01/2021 2 CRC 35,000 MM 24,016 9.15%

Subordinated 27-may-2014 15-nov-2023 9.6 USD 100 MM 100 MM Libor6m+5.00%

Subordinated 2-nov-2014 23-oct-2029 15 USD 30 MM 30 MM Libor6m+5.25%

RegS / 144A 25-abr-2016 25-abr-2021 5 USD 500 MM 350.2 MM 5.875

RegS / 144A 1-nov-2013 1-nov-2023 10 USD 500 MM 500 MM 6.25

Long term

obligations LoansMM CRC rate MM USD rate

Local 33,278 4.37%

International 154.64 MM 5.97%

Total 33,278 4.37% 154.64 MM 5.97%

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CREDIT RATINGS

Local

BNCR Fitch

Last May-19

International

Long term debt Fitch

Corporative bonds AA+

Mortgage bonds AA+

Long term deposits AA+

Short term debt Fitch

Short term deposits F1+

Certificates of deposits F1+

BNCR Fitch Moody’s

Last Jun-19 Dic-18

Outlook Neg Neg

Stand alone rating foreign

currency

B+ Ba3

22 of 26

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Progreso

Credit Deposits

MARKET SHARE

Cu

rren

t acco

un

tS

av

ing

s d

ep

osit

sT

erm

ob

lig

ati

on

s w

ith

the

pu

blic

20.5

6.0

12.2 12.613.4

35.3

BNCR Other Corporativesand mutuals

Specialpurpose

Govermentbanks

(exBNCR)

Private banks

29.7

0.0 0.0 0.4

28.0

41.8

BNCR Other Corporativesand mutuals

Specialpurpose

Govermentbanks

(exBNCR)

Private banks

34.6

7.4 8.5 9.016.0

24.5

BNCR Other Corporativesand mutuals

Specialpurpose

Govermentbanks

(exBNCR)

Private banks

20.4

1.4

14.411.0

15.9

37.0

BNCR Other Corporativesand mutuals

Specialpurpose

Govermentbanks

(exBNCR)

Private banks

23 of 26

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Financial income (million CRC) NIM

FINANCIAL PERFORMANCE

Fee income (million CRC) Operational expenditure (million CRC)

129,379 132,100 135,210

-66,622 -67,849 -69,240

III-2018 II-2019 III-2019

Financial income Financial expense

62,758 64,251 65,9692.7%2.4%

5.1%

26,441 28,543 28,856

-21,319 -23,943 -26,254

III-2018 II-2019 III-2019

Commissions Net FX income Other income

10,838 9,908 8,412

-15.1%-8.6%

-22.4%

4.65 4.81 4.88

3.123.60

4.37

III-2018 II-2019 III-2019

NIM Net NIM

30,223 31,196 31,538

7,465 7,185 7,273

III-2018 II-2019 III-2019Personal Operating Infraestructure Depreciation

48,492 44,179 47,017

6.42%-8.89%

-3.04%

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ISP composition (Dec-18) ISP composition (Sept-19)

CAPITALIZATION13.07 12.87 13.02 12.74 12.82 12.70 12.70 13.19 13.17

12.4212.86 13.26 13.38

9.49 9.08 9.8110.56 10.50 10.40 10.83

11.05 10.93

10.5310.88 11.17

11.36

Sep

-16

Oct

-16

Nov

-16

Dec

-16

Jan-

17

Feb

-17

Mar

-17

Apr

-17

May

-17

Jun-

17

Jul-1

7

Aug

-17

Sep

-17

Oct

-17

Nov

-17

Dec

-17

Jan-

18

Feb

-18

Mar

-18

Apr

-18

May

-18

Jun-

18

Jul-1

8

Aug

-18

Sep

-18

Oct

-18

Nov

-18

Dec

-18

Jan-

19

Feb

-19

Mar

-19

Apr

-19

May

-19

Jun-

19

Jul-1

9

Aug

-19

Sep

-19

Razón Sugef Razón Tier I

Minimun Sugef: 10%

Tier I

3.75

7.61

1.27 0.620.40

0.75 1.28 -2.13

13.38

Ordinarycapital

Legal reserve Revaluations Earnings frompreviousperiods

Result of theperiod

FINADE Subordinateddebt

Deductions Regulatorycapital

3.58

6.95

1.09 0.410.44 0.64

1.38 -2.13

12.42

Ordinarycapital

Legal reserve Revaluations Earnings frompreviousperiods

Result of theperiod

FINADE Subordinateddebt

Deductions Regulatorycapital

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Efficiency ratio Administrative expenditure (YoY growth, %)

EFFICIENCY

Administrative expenditure breakdown (million CRC)

64.10

62.34

61.89

63.86

64.53

63.16

62.48

I-2018 II-2018 III-2018 IV-2018 I-2019 II-2019 III-2019

3.9 2.39.9

1.7

-37.2

1.62.1 2.2 2.0 1.4 2.4 2.5

II-2018 III-2018 IV-2018 I-2019 II-2019 III-2019Administrative expenditure Inflation

30,749 30,223 29,690 31,930 31,196 31,538

II-2018 III-2018 IV-2018 I-2019 II-2019 III-2019

Personal Operational Infrastructure Depreciation

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Branches(1) Payroll(1)

BRANCHES AND PAYROLL

(1) Includes all BNCR Group

176 176 176 176

169 169

167 167 167

162 162

I 2017 II 2017 III 2017 IV 2017 I 2018 II 2018 III 2018 IV 2018 I 2019 II 2019 III 2019

5,8385,862

5,841 5,844 5,840

5,806

5,7465,716

5,644

5,589 5,599

I 2017 II 2017 III 2017 IV 2017 I 2018 II 2018 III 2018 IV 2018 I 2019 II 2019 III 2019

As of september 30, 2019, the Bank has 162 offices, 463 automated taller machines, and a total of 5,599 employees (2018: 167 offices, 468automated taller machines, and 5,746 employees). Employees are distributed as follows: Banco Nacional de Costa Rica – 5,160 employees (2018:5,333); BN Valores Puesto de Bolsa, S.A. -71 employees (2018:71); BN Vital Operadora de Planes de Pensiones Complementarias S.A.-185employees (2018:173); BN Sociedad Administradora de Fondos de Inversión, S.A.- 86 employees (2018:79); and BN Corredora de Seguros, S.A.-97employees (2018:90). The Bank’s website is www.bncr.fi.cr.