UPDATE 1-Dexia makes third straight profit in Q3

* Q3 net profit 274 mln euros vs 269 mln euro forecast

* Q3 income 1.37 bln euros vs 1.54 bln euro forecast

* Says successfully implementing restructuring

* Tier 1 ratio 11.8 pct, core Tier 1 ratio 10.8 pct

(Adds details, background)

BRUSSELS, Nov 13 (Reuters) - Franco-Belgian financial services group Dexia (DEXI.BR) reported a third consecutive quarterly profit on Friday, in line with expectations, saying its restructuring was proceeding well.

Dexia, which is awaiting a European Commission ruling on state aid received in the past year, said net profit in the July-September period totalled 274 million euros ($411 million), compared with a loss of 1.5 billion euros a year earlier.

The average forecast in a Reuters poll of nine analysts was a profit of 269 million euros. [ID:nLA728705]

The figures from Dexia, the world's largest municipal lender, confirmed its forecast that third-quarter results would be similar to those of the first two quarters. [ID:nLU288499]

The company posted third-quarter income of 1.37 billion euros, compared with the consensus poll forecast of 1.54 billion.

Its Tier 1 ratio was 11.8 percent at the end of September and its core Tier 1 ratio 10.8 percent, both improving on their end-June levels.

The company received 6.4 billion euros from France, Luxembourg, Belgium and key shareholders in September 2008. It later won state guarantees for its new borrowing and to cover riskier securities linked to subprime mortgages.

In response, Dexia sold its loss-making bond insurer Financial Security Assurance (FSA) to Assured Guaranty (AGO.N), although it held on to FSA's financial product activities.

The group plans to save 600 million euros over the next three years and is reviewing its insurance and fund management divisions.

"Thanks to a collective and sustained effort from all its stakeholders, the group is successfully implementing its restructuring," Chairman Jean-Luc Dehaene said in a statement.

"Discussions with the European Commission regarding the restructuring of Dexia are continuing in an open and constructive climate," he continued.

The European Union's executive Commission has said it will decide by the end of February 2010 whether Dexia's restructuring plan would secure the company's long-term viability.

Media have speculated that Dexia might be forced to sell its French division Credit Local. Belgian business daily De Tijd said on Friday that such a sale could be avoided.

Dexia shares are trading around five times their level as of March 9, when they hit an all-time low of 1.1 euros. (Reporting by Philip Blenkinsop, editing by Dale Hudson) ($1=.6668 euro)