FRANKFURT—In the midst of a major overhaul, Germany’s Commerzbank on Thursday posted better-than-expected third-quarter net earnings and forecast a profit for the full year, defying analysts’ predictions for a 2021 loss. The quarterly results were supported by a decrease in provisions set aside to cushion the fallout from the pandemic, as well as lower costs. The positive tone in Germany echoed across much of Europe’s banking sector, which for the past few years has been struggling with negative interest rates and the impact of COVID-19. Societe Generale and ING also both reported better-than-expected profit on Thursday, helped by the release of provisions set aside for loan losses that didn’t materialise. Shares in Commerzbank rose 6.4 percent in early trade, while SocGen gained 3.6 percent and ING 2.3 percent. The outlook at Germany’s No. 2 bank is a victory for the new Chief Executive Manfred Knof, who joined the bank at …