Analysts are racing to raise earnings estimates for Europe's banks, more because of healthy profits from the first half of the year than stress tests, according to The Economist. Profits of BNP Paribas, UBS and Deutsche Bank beat analysts' forecasts, aided largely by plummeting loan losses. "Still, enthusiasm about the health of the region's banks should be tempered by the fact that many are still on government-backed life support and that the next few years are likely to be tough," the magazine notes.

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