OREANDA-NEWS. Fitch Ratings has published its Brazilian Large Public Banks Dashboard, a publication that examines Brazil's three largest federal government owned banks, Banco do Brasil S.A. (BdB), Banco Nacional de Desenvolvimento Economico e Social (BNDES) and Caixa Economica Federal (Caixa).

Key items covered in this report include the 2015 year-end results of BdB, BNDES and Caixa and Fitch's outlook on their asset quality, profitability and capitalization for 2016.

All three banks reported large declines in operating profits in 2015, mainly as a result of higher impairment charges that were driven by the weak macro backdrop. Fitch believes that outlook is increasingly challenging in 2016 and thereafter for these banks. The agency forecasts GDP to contract 3.5% and unemployment to continue to rise in 2016; therefore, impairment charges in both retail and corporate segments will continue to increase.