European banks report Q3 earnings this week and next
Focus on fading interest rate boost, cost controls
UniCredit move stirs MA chatter

LONDON, Oct 21 Reuters Europe39;s biggest banks are healthier than at any point since the 200809 financial crisis, but investors want reassurance that they can trust their longer term earnings power as interest rates fall.

Bank share prices have broadly delivered a doubledigit rise this year, driven by stock buyback programmes made possible by years of capital accumulation, restructuring, cost cuts and supportive central bank policy, which boosted their profits.

Deutsche Bank, Lloyds and Barclays will kick off thirdquarter earnings reporting this week, while UBS and HSBC will be among those reporting next week.

The numbers are expected to show continued profitability, with robust investment banking activity offsetting squeezes on margins and weak demand for loans among consumers and businesses.

But investors want more. Besides looking for evidence of asset quality resilience, they are seeking sharper strategy, lower costs and the potential to outperform in a low growth global economy.

Dealmaking has captured the imagination of bank boards in the last three months. BNP Paribas BNPP.PA bought AXA Investment Managers and UniCredit raised its stake in Germany39;s Commerzbank, stirring chatter on crossborder consolidation.

Estimates suggest that up to 600 billion euros 652 billion in net interest income could be at risk in the first…