The Development Bank of Samoa financial performance for the year ended 30 June 2020, has been labeled as a challenging year for the Bank.
This is a result of the two health crisis which started from 2019, the measles outbreak and the global pandemic of the COVID-19 in 2020.
The financial impact on all the businesses that are clients of the DBS, in particular the tourism sector that accounts for 67 percent of the loan portfolio.
There were 358 new approved loans for financial year 2019-2020; valued at $6.8million are consistent with the budget.
However, total new loans declined when compared to the previous financial year.
The Bank’s annual report says the stimulus package received from Government of $2million to cover interest relief and rent for private tenants over three months, provided short-term funding cover for shortfalls in revenues for the said period.
Despite the challenges the DBS recorded a surplus of $1.1million from the operation; while the overall loss for the bank amounted to $444,000.
The prolonged period to realise non-performing loans and the uncertainty of COVID-19 will continue to challenge the Institution’s financial sustainability.
The DBS however remains steadfast that appropriate measures are in place to effectively manage and sustain operation into financial year 2021-2021.