* FTSEurofirst up 2 pct, still down since start of 2016
* Lloyds, AXA, Deutsche Telekom rise after results
* Zodiac slumps after profit warning
* Citi stays overweight on continental Europe shares (Adds details, updates prices)
By Danilo Masoni and Sudip Kar-Gupta
MILAN/LONDON Feb 25 (Reuters) - European shares rebounded on Thursday from losses earlier in the week, as solid corporate results including from British bank Lloyds lifted stock markets.
The pan-European FTSEurofirst 300 index, which had fallen around 4 percent in the previous two sessions, rose 2 percent by 1522 GMT.
The FTSEurofirst remains down by around 10 percent since the start of 2016, dragged by concerns about a slowing global economy and the health of Europe's banking sector.
Markets were looking ahead to this weekend's G20 meeting of world financial leaders in Shanghai but some investors were sceptical it could provide a big boost to sentiment.
"We're getting closer to the G20 meeting but the market doesn't look to be expecting much out of it," said Alessandro Balsotti, Senior Portfolio Manager at JCI Capital in London.
Lloyds surged 12 percent after announcing a special dividend payment and higher profits, while shares in the rig company Seadrill advanced 6.7 percent as investors welcomed a refinancing plan.
AXA also progressed 1.5 percent after posting higher profits, and gains in top banking and insurance stocks added the most points to European stock markets.
Phone group Deutsche Telekom rose more than 3 percent after better than expected fourth-quarter results in its domestic German market, helped by expansion of its super-fast broadband network.
German builder Hochtief rose 10 percent after its full-year operational net profit rose more than expected, as its European division for the first time in many years achieved a clear break-even result.
"Today it was one of the busiest days for corporate earnings in Europe and the market has been strongly rewarding companies that have beaten consensus," said Stephane Ekolo, Chief European Strategist at Market Securities.
Zodiac Aerospace slumped 23 percent after announcing a profit warning.
According to Thomson Reuters StarMine data, 53 percent of companies on the European STOXX 600 index have met or beaten market expectations with their fourth quarter results.
U.S. investment bank Citigroup cut its 2016 global economic growth forecast but kept an "overweight" position on European shares excluding the UK, as it felt the UK market would be impacted by uncertainty around Britain's 'Brexit' vote in June on whether or not to stay in the European Union.
"We remain 'overweight' Europe excluding the UK, where equities look especially attractive relative to bonds, and 'underweight' UK where Brexit fears are likely to be a drag," Citigroup wrote in a note.
Today's European research round-up (Editing by Richard Balmforth)