Hawaiian Electric Industries Inc. reported a sharp increase in third-quarter profits today, helped by improvement in both its electric utility and banking subsidiaries.

Net income rose to $37.3 million, or 44 cents per share, in the third quarter from $19.9 million, or 24 cents per share in the same period a year earlier.

"Our earnings showed significant improvement over our unusually low results in the third quarter of 2007, which included a utility customer refund accrual that reduced those results by 10 cents a share," said Constance H. Lau, HEI president and chief executive officer.

Electric utility net income for the third quarter was $25.9 million up from $12.9 million in the same quarter in 2007 and $23.7 million for the same quarter in 2006.

Net income at American Savings Bank was $15.4 million in the third quarter, up from $11.7 million in the same quarter a year earlier. Return on assets in the third quarter of 2008 was 1.11 percent compared with 0.69 percent in the third quarter of 2007.

"The bank's earnings improved 31 percent quarter-over-quarter, benefiting from a steeper yield curve, continued good credit quality and lower expenses resulting from performance improvement initiatives," Lau said.