UPDATE 2-Dutch broker BinckBank Q3 below expectations

* Q3 net profit 9.6 mln euros vs 10.2 mln in Rtrs poll

* Net commission income 28 mln euros vs 31.9 mln in poll

* Declines to give outlook as volumes difficult to predict

* Shares up 2.6 pct, reversing earlier fall

(Adds BinckBank, analyst comment, share price, byline)

By Gilbert Kreijger

AMSTERDAM, Oct 25 (Reuters) - Dutch online equities trader BinckBank N.V. BINCK.AS missed third-quarter profit and sales estimates on Monday as transaction volumes fell because of flat equity markets, and it declined to give an outlook.

BinckBank shares, which fell about 20 percent in April when the broker missed estimates on weak markets, opened as much as 3.9 percent lower on Monday, but were up 2.6 percent at 10.58 euros by 0821 GMT. The Amsterdam midcap index .AMX was up 0.3 percent.

Most analysts kept their “buy” or “accumulate” ratings citing the broker’s growth prospects.

Theodoor Gilissen analyst Tom Muller said he expected continued client growth thanks to expanded operations in France and a contract with SNS Bank, while RBS analyst Thomas Nagtegaal said BinkBank’s valuation was becoming attractive again, trading about 20 percent lower than peers in terms of price-earnings ratio.

BinckBank, which operates in the Netherlands, Belgium and France, said in a statement quarterly net profit was 9.6 million euros, below the 10.2 million expected on average by four analysts in a Reuters poll.

Profit was down 30 percent compared with the same quarter last year, and down 27 percent from the preceding period.

“BinckBank had to deal with exceptionally lacklustre markets in the third quarter of 2010. The markets showed no clear direction, resulting in a decline in transaction volumes,” BinckBank said.

KBC Securities analyst Dirk Peeters said in a note he had reduced BinckBank’s target price to 14 euros from 15 euros to reflect the slowdown in full-year growth forecasts but he kept his “accumulate” rating.

BinckBank declined to give an outlook but said it remained confident of realising its medium-term targets, which set a minimum number of clients and assets under management by 2013 but not profit or sales objectives.

Chief Executive Koen Beentjes told Reuters BinckBank would take a decision on entering a fourth country by year-end but he did not expect operations to launch in 2011.

“Every country has its particularities which you have to weigh against each other. Germany, for instance, has nine regional and many over-the-counter markets. Spain works with registers. For Switzerland, client data needs to remain in the country,” Beentjes said.

Net commission income fell 21 percent to 28 million euros, compared with the same quarter last year, and 31.9 million on average in the Reuters poll. Total revenue, which fell 12 percent, also missed expectations.

BinckBank competes in the Netherlands with ING ING.AS and ABN AMRO [ABNNV.UL], and in France with Boursorama FMTX.PA, BNP Paribas's BNPP.PA Cortal Consors, and Bourse Direct BDRP.PA. (Reporting by Gilbert Kreijger; Editing by Sara Webb)