1.3 bln euro provision behind first loss in four years
Q2 loss narrower than analysts had expected
Second share buyback this year is unlikely, CFO says
Shares down 7 in early trade

FRANKFURT, July 24 Reuters Deutsche Bank posted its first loss in four years in the second quarter after setting aside 1.3 billion euros 1.41 billion as a provision for an investor lawsuit, scuppering plans for a stock buyback and triggering a 7 drop in shares.

The loss at Germany39;s largest lender broke a profit streak of 15 consecutive quarters, in a setback for the bank39;s turnaround under CEO Christian Sewing.

The bank also increased its forecast for possible credit losses, and its finance chief said the bank was unlikely to conduct a second share buyback this year, sending shares lower.

Deutsche executives nevertheless said the quarter was an aberration and that the bank should still meet its targets.

The loss is solely due to the legal provision, CEO Christian Sewing wrote in a memo to employees.

He said our operating strength is evident and that the bank would meet its financial goals.

The bank39;s quarterly earnings are part of a flurry of reports from Europe39;s biggest banks, as investors search for evidence of whether gains from higher interest rates have lost steam and political turmoil in France and the U.S. and a change of government in Britain have affected sentiment.

Analysts with RBC Capital Markets and KBW said Deutsche39;s underlying results were good.

The…