UPDATE 1-SNS says rights issue talk hypothetical

* SNS discussed rights issue at analyst conference

* Did not indicate it was considering issue, won't comment on possibility

(Releads with SNS reaction)

AMSTERDAM, June 4 (Reuters) - Dutch bancassurer SNS Reaal (SR.AS) declined on Thursday to say whether it would make a rights share issue to repay the government for capital support, despite having discussed the idea at an investors' conference this week.

"In no way have we indicated that we are considering a share issue," an SNS spokesman said, adding that the banking and insurance group would never comment on whether it would make such a move.

Analysts at Royal Bank of Scotland had said SNS might consider a rights issue in their summary of comments made by SNS at RBS's Benelux equities conference for investors this week, which is closed to the press.

The SNS spokesman confirmed that the possibility of a share issue was mentioned and discussed as a hypothetical option at the conference, among other scenarios.

SNS got a capital injection of 750 million euros ($1 billion) from the Dutch government last November after posting a third-quarter loss on a fresh series of writedowns. The company would need the permission of the Dutch central bank DNB to make a rights issue.

Analyst Thomas Nagtegaal, in his note, also said that SNS was seeing slightly better margins in retail banking this quarter, due in part to lower rates on savings accounts.

In a separate note from the conference, Nagtegaal said BinckBank (BINCK.AS) management was happy with developments thus far this quarter. He said that implied "client activity remains surprisingly strong."

SNS shares were up 1.2 percent at 4.01 euros by 0923 GMT in Amsterdam. BinckBank shares were down 0.4 percent at 9.26 euros. ($1=.7050 euros) (Reporting by Ben Berkowitz and Catherine Hornby; Editing by Greg Mahlich)