European stocks end week higher as banks rally

* FTSEurofirst 300 ends week 3.2 percent higher

* Banks lead gainers, pushed higher by Citi Q2

* Delhaize warning knock food retailers

By Patrizia Kokot

LONDON, July 18 (Reuters) - European shares ended sharply higher on Friday after better-than-expected earnings from U.S. bank Citigroup (C.N: Quote, Profile, Research, Stock Buzz) spurred a rally in financial stocks.

The FTSEurofirst 300 index .FTEU of top European shares closed 1.56 percent higher at 1,164.19 points, having fluctuated between 1,133.28 and 1,163.71 during the day.

The index gained around 3.2 percent during the week, but has lost about 23 percent so far this year.

Citigroup, the largest U.S. bank, posted a smaller-than- expected $2.5 billion loss, sending the DJStoxx European banks index 4.9 percent higher.