Samoa Housing posts record profit
The Financial Year report for 2015-2016 of the Samoa Housing Corporation has been a successful year in terms of operational performance.
According to the report, the Corporation achieved a record profit of $948,942 or a 14% increase from the previous year.
The steady increase in revenue and profit reflects the overall business growth as characterized by a moderate quality loan portfolio and prudent financial management.
“Net profit is recorded at $948,942 representing a 14% increase from last year with a 13% increase of overall expenditure,” the report says.
“An increase of 4% from last year return on equity ratio is due largely to the increase of the value of the Corporations’ property at Matafele.
“A total loan portfolio value increased to $14% increase from the previous year and loan approvals was $20.3million tala or a 26% increase from the previous year.
The transfer of the government rental housing in 2013 the corporation has successfully managed to streamline its rental housing administration processes and guidelines so it can contribute profitably to its mainstream functions.
“Managing the rental property portfolio has been a continued challenge due to significant investment to bring them up to commercial standard.
“This is evident by the ST$1.4million capital expenditure the FY 2015-16 year.
“The 28 properties are now fully refurbished and rented out to mostly private tenants and a few commercial ones.
The report continues, as of today, the Corporation continues its commitment to providing accessible financing for affordable homes to our citizens, and they are also continuing to build and provide a competitive rental portfolio to match.
Their vision is to be the active leader in the provision of finance for housing and land property for residential purposes.
The role of the Corporation in Samoan society is to provide access to quality financial services and to provide affordable homes for those on modest incomes.
Most of its clients are middle to low income earners who are unable to qualify for credit facilities from commercial financial institutions, as they do not meet the collateral requirements and or repayment schedules.
Since its establishment in 1990, the Corporation has managed to increase its market share in home financing with a total portfolio of $40 million. As a lending institution, the Corporation is dependent on long term borrowings from local lending institutions and income generated from repayment collections.
This week, the Samoa Housing Corporation (S.H.C.) celebrated further success and recognition of their achievements from a global organisation.
The Corporation was awarded a Merit Award by the Association of Development Financing Institution in Asia and the Pacific (A.D.F.I.A.P.) during their 40th Annual Meeting held in China.
The award recognises consistent exercise of corporate social responsibility, in relation to the Corporation’s “HAS Build Project II.” The organisation has used the project to improve many lives of many people in Samoa.
Chief Executive Officer of S.H.C., Mata’utia Rula Levi, said the award also recognised their work in partnership with Habitat New Zealand and A.D.R.A. Samoa to build resilient homes for people who are in need.
“In the past few years, there have been local and overseas awards for leadership and the achievements in the Corporation as well as recognition of their strong role in assisting their clients into affordable housing.”