It also stated that it is not involved in asset securitisation or overseas investment, nor does it have any sub-prime exposure in its books. It is maintaining a 'solid cash position with no outstanding borrowing from other financial institutions.'

In spite of the reassurances, Hong Leong's profits saw a drop of 16.2 per cent in its third quarter ending Sept 30, from $36.9 million to $30.9 million.

This was due to a decline in recovery of debts previously provided for.

Earnings per share for the third quarter was 28.07 cents, compared to 33.61 cents a year ago.

Net asset value was $3.13 as at Sept 30, compared to $3.05 at last Dec 31.