FRANKFURT—Germany's Commerzbank AG said Friday that it bounced back into profit in the fourth quarter from losses prompted a year earlier by hefty legal charges.

Net profit in the three months to the end of December was €187 million ($165.35 million) compared with last year's €280 million loss, beating analysts' forecasts of €155 million in a poll by The Wall Street Journal.

Commerzbank earnings were hit a year earlier by a $1.45 billion charge to settle sanctions and money-laundering violations.

The profit boost was helped by revenue gains at the partially state-owned lender, rising to €2.3 billion from €1.8 billion in the final quarter last year and in-line with forecasts.

"2015 has shown that our strategy is right and the implementation has been successful," outgoing Chief Executive Martin Blessing said, adding that management will propose a dividend of 20 cents a share for the 2015 financial year.

In a surprise move late last year, Mr. Blessing announced that he would leave at the end of his contract in May.

Write to Eyk Henning at eyk.henning@wsj.com

(END) Dow Jones Newswires

February 12, 2016 01:55 ET (06:55 GMT)