Despite record economic downturn, the Samoa Housing Corporation’s (S.H.C.) has delivered a 30-year record in its financial performance by generating $2.1 million in profits last fiscal year. 

The S.H.C. lends money for residential housing development and administers the Government’s rental housing portfolio. Its financial results are contained in its annual report for 2019-2020. 

“[The] financial year 2020 was a stellar year for [the] S.H.C. In our 30 years of service we delivered a record financial performance of $2.1 million tala profit high compared to $1.8 million tala in the prior year which indicates a 15% increase respectively. 

“The Corporation managed to offer its first ever widely scoped stimulus package with a total value of $4 million tala to support all its customers and stakeholders in the wake of the unprecedented [COVID-19] pandemic economic downturn,” Chairman of the S.H.C. Tuilaepa Eti Faolotoi in his report. 

He said the total value of the corporation’s loans portfolio in 2020 was $60.3 million tala compared to $56.2 million tala the previous year - growth of about 7 per cent. 

“This portfolio growth [reflects] high demand [for our] financial services and continuous effort of the Corporation to revise and realign its policies to elevate performance,” the Chairman said. 

“Our mandatory function of increasing loans accessibility to those on modest incomes and improving their quality of living standards is a great contribution to the alleviation of poverty and promoting home and property ownership.

”Our rental portfolio became one of our two major core function activities since its transfer in 2013. 

“Two more units have been transferred by Cabinet in 2020 to our housing stock including the former Head of State’s Office at Motootua and the former Chief Justice’s residential house at Lelata to upgrade into upmarket residences following 100 per cent completion of [...] the housing stock since [...] 2013. 

“The rental occupancy rate is 100% and the Corporation is planning on maximizing its housing stock by building multiple units to replace old housing stock not in a recoverable state of repair.”

The Chairman said the corporation had undergone a major shift in strategy by elevating the rights and interests of the elderly and infirm, young people and people with disabilities in its lending functions 

“The Corporation undertook a $12 million tala loan facility from the Samoa National Provident Fund to consolidate our debts and assist its initially generated funds to finance its core activities to meet the growing demand of our services 

Chief Executive Officer of the S.H.C. Matautia Rula Levi said strong performance had occurred despite the many challenges of the past year. 

“Expenditures increased by 3 percent from $5.9 million tala in the previous year to $6.1 million tala which [reflects…] the growth of our function activities implemented over the year,” Matautia said. 

“Total gross revenue increased to $8.2 million tala from $7.8 million tala in the last financial year with an increase of return on equity by 10%. 

“A record net profit of $2.1 million tala was achieved, increasing by 15% from $1.8 million tala in the previous year. 

“This was attainable mainly through increased interest earnings and improved portfolio quality through decreased provisions for bad and doubtful debts.” 

She said the effect of the global pandemic was a major challenge towards the last quarter of the financial year and slightly affected the corporation’s target. 

“The Corporation participated in the Governments relief and stimulus package delivered to salvage our economy’s downturn by offering assistance with a value of $4 million tala to support our customers through a moratorium on repayments and a major reduction on costs of borrowing for six months as well as rental payments,” the report said. 

“This global pandemic is still seen as one of the major threats in our operating environment due to its life-threatening impact on clients and stakeholders together with businesses and employers as well as mobilization of resources.”