Mr Hubbard has also given a legally-binding commitment to underwrite any further significant downgrades or balance sheet hits from "specific loans" during the current recession.
The finance company has $750 million or 23% of its loan book tied up in property, but has made a conservative non-cash provision of $58 million for non-performing investments and doubtful property assets for this financial year.
Chief executive Lachie McLeod said South Canterbury Finance (SCF) expected to make a net loss for the year to June 30 of $37 million.
Prior to the write-down, the company was expected to make a net profit after tax of $21 million.
SCF still expected to make an operating profit of $21 million for this year and has forecast a bottom-line profit for the 2009-10 year of between $18 million and $22 million.
The company has reviewed its loan portfolio and quarantined non-performing and doubtful loans, but he said the property market had deteriorated more than anticipated in the past six months.
He said in an interview that the company had not made any property development loans for 18 months and most of its property loans were in Taupo, Wellington, Christchurch and Dunedin with little invested in Auckland or Queenstown.
Most loans were to developers which would be reduced for the next 12 to 18 months, over which period he hoped the sector would start correcting itself.
Other divisions on the SCF loan book were performing well.
Rural, consumer, business, plant and aviation were all performing well and he expected growth in consumer, plant and rural lending.
"In fact we would like a lot more rural, it is something we understand well."
Mr Hubbard said in a statement that the lending environment was hampered by a lack of confidence, exit strategies and sale options, but it would continue to lend money "to backbone businesses and industries".
Total assets by balance date would be $2.3 billion, up from $2 billion a year earlier, and it has liquidity of up to $228 million from cash and investments in listed bonds.
Net equity was steady at $236 million.
Mr McLeod said SCF would meet all obligations to investors and perpetual preference shareholders and it has complied with the Government's deposit guarantee scheme and covenants within its trust deed.
ABN Amro Craigs broker Peter McIntyre said having a backer such as Mr Hubbard highlighted how SCF differed from other finance companies.
But, he said there were signs the property market had not yet bottomed out which could mean a year of further pain for financiers such as SCF.
There were also some key dates looming for SCF, such as the October 2010 end to the deposit guarantee scheme and the maturing of its three bond issues, with the first, for $100 million, falling due in October 2010.
