UPDATE 2-Van Lanschot profitable in Q3 on heavy inflows

* Banks sees 'major increase' in inflows

* Higher transaction volumes help push up commissions

* Does not know yet the size of its DSB charge * Shares up 2.1 pct in very thin trading volume

(Adds analyst comment, shares, detail)

By Ben Berkowitz

AMSTERDAM, Nov 6 (Reuters) - Dutch private bank Van Lanschot's (VLAN.AS) swung to a third quarter profit on Friday, helped by inflows from wealthy individuals renewing their interest in stock market investment.

Van Lanschot said inflows from private and institutional clients underpinned a "major increase" in assets under management, while higher share transaction volumes contributed to a rise in commission income.

Van Lanschot, which mostly services clients with wealth of several hundred thousand euros, echoed earlier remarks by Credit Suisse.

Credit Suisse (CSGN.VX) attracted 13.1 billion swiss franc ($12.9 billion) of net new money in the July-September period, the strongest of any quarter this year, the Swiss banking group said two weeks ago. [ID:nN2217547]

Lured by a recovery in stock markets, private banking clients are looking for higher returns on their savings after they switched to less risky assets during the height of the financial crisis. [ID:nL5661402]

Van Lanschot, whose Swiss rival Julius Baer (BAER.VX) gives a trading update next Tuesday, said interest and commission income increased in the third quarter from the second, while operating expenses declined.

At the end of June, Van Lanschot, generally ranked as the third largest private bank in the Netherlands by total assets, had 26.6 billion euros of assets under management for private clients.

Van Lanschot's shares were up 2.1 percent at 39.8 euros but only 1,082 shares had traded hands by 1037 GMT.

"We believe that this confirms (Van Lanschot's) improving competitive position compared to the State aided banks," SNS Securities said in a research note. Van Lanschot's two larger peers, ABN AMRO [ABNNV.UL] and ING (ING.AS), both received substantial state aid last year.

Loan loss provisions remained at a historically high level for the company, according to its statement. However it said capital ratios rose slightly from June on the effects of the net profit and a "slight decrease" in its loan portfolio.

Van Lanschot added it will take a fourth-quarter charge - the size of which is not known - against the bankruptcy of DSB Bank. All Dutch banks must pay into a guarantee scheme to reimburse DSB depositors. (Reporting by Ben Berkowitz and Gilbert Kreijger; Editing by David Holmes and Jon Loades-Carter) ($1=1.017 Swiss Franc)