(Bloomberg) -- ABN Amro Bank NV slumped after third-quarter net interest income missed estimates as clients moved their savings to higher-yielding products.

The Dutch lender said the difference between what it earns from loans and pays on deposits rose to €1.53 billion ($1.6 billion) in the period, falling short of average analyst expectations of €1.65 billion. 

ABN Amro sees “a shift from current accounts into time deposits,” Chief Financial Officer Ferdinand Vaandrager said in a phone interview. “I think the rate of migration will slow down from here,” he said. 

The bank’s shares dropped as much as 9.3%, the most in nearly eight months, and were trading 9.1% weaker at €11.96 apiece as of 11:16 a.m. local time. Net interest income was also impacted by lower results in trading activities compared with the previous quarter, the bank said. 

Meanwhile, net income rose to €759 million, higher than expectations of €579 million. The bank said impairment releases in the quarter amounted to €21 million, compared to estimates for loan loss provisions of nearly €100 million.

“The revenue mix is poor with net interest income missing significantly and other income beating,” Jefferies International analysts led by Flora Bocahut said in a note to clients. 

European banks have booked higher profits in recent quarters after the European Central Bank increased interest rates to tame inflation. That has enabled many banks, including UniCredit SpA and cross-town rival ING Groep NV, to announce share buyback plans.   

ABN Amro, which completed a €500 million share buyback in April, reiterated that it would update the market on its financial targets and payouts when it reports full-year results in February.

“Slowing economic growth contrasts with our strong business momentum,” Chief Executive Officer Robert Swaak said in the earnings statement. “Demand for credit remains good and both our mortgage and corporate loan books increased,” he said. 

The lender’s third-quarter profit included gains from the sale of its life insurance business to NN Group, divestment of ABN Amro Pensioeninstelling as well as the sale of the bank’s stake in MP Solar.

ABN Amro will also have to contend with the Dutch government’s efforts to aid low-income households through higher taxes. Lawmakers in the lower house of the Dutch parliament last month approved an increase in a bank levy and decided to impose a tax on share buybacks. The senate is yet to vote on the proposal. 

During the quarter, the Dutch government cut its stake in the bank to just below 50%. The Netherlands, which bailed out ABN Amro at the height of the financial crisis, last month estimated that the move has set the state back by €6.7 billion. 

--With assistance from Nicholas Comfort.

(Updates with details throughout)

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