Hanover Finance says the challenging economic conditions have hurt its bottom line.
The struggling finance firm lost $102 million in the year to June, compared with a $13 million profit in the previous year.
Net interest income fell a third to $41.6 million as a number of borrowers failed to repay loans on time.
Bad and doubtful debts jumped to about $309 million.
The company is blaming the loss on the weak economy and slumping property development market, as its borrowers are not repaying their loans.
Last week, Hanover's 16,500 investors were warned they are only likely to get 70% of the $554 million they are owed because of a deterioration in the commercial property market.
Hanover needs to 'come clean'
Kapiti sharebroker Chris Lee says Hanover's portfolio of bare land and half completed hotel and residential projects would struggle to find a buyer, which affects property values.
And he says there is no finance available to complete the projects.
He says Hanover needs to come clean and admit the loans it made are worth very little.
