BNPP, Deutsche, Santander and UniCredit all report
Banks beat expectations but concerns about outlook grow
Shares fall, led by Deutsche after it axes buyback plan
More European banks report this week and next

PARISFRANKFURTMILAN, July 24 Reuters The euro zone39;s biggest banks largely beat second quarter earnings expectations on Wednesday, benefiting from stillhigh interest rates and bumper investment banking business, although concerns about a tougher outlook held back their shares.

European banking shares, pinned lower for a decade by poor profitability when central bank interest rates were stuck at zero, have risen 20 since January and trade near nineyear highs.

On Wednesday, the STOXX Europe 600 Banks index was down 0.5 by 1510 GMT after a raft of bank earnings fed into analyst and investor concerns about the sustainability of the sector39;s profit growth.

Germany39;s Deutsche Bank bucked the general trend with a quarterly loss related to a previously flagged provision for a lawsuit linked to its troubled Postbank unit. But the surprise was it axing plans for another buyback and a rise in bad loan loss charges, sending its stock down 7.

BNP Paribas39;s revenue and profits exceeded analyst expectations thanks to a blowout quarter for its equities traders mirroring the equities boom among Wall Street banks and a jump in revenue at its overall investment bank division.

The French lender39;s more than 11.2 billion euros 12.2 billion net profit target should be…