The Institute for the Works of Religion (IOR, by its Italian acronym), popularly known as the Vatican Bank — a small financial institution with just over 100 employees founded by Pope Pius XII in 1942 — obtained a net profit of 32.8 million euros (about $37.7 million) in 2024, compared with 30.6 million euros (about $35.1 million) in 2023.
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As indicated in the annual report published Wednesday by the Holy See Press Office, the net profit of 32.8 million euros represents a 7% increase compared with 2023.
This result, according to the report, is due to growth in interest income (+5.8%), commission income (+13.2%), and brokerage income (+3.6%), along with other measures implemented to ensure strict cost control.
The report also included information on the profits redistributed to the pope and to other Holy See budget items.
As required by the IOR statutes, the report was subsequently submitted to the Commission of Cardinals, which authorized the distribution of a dividend of 13.8 million euros (about $15.8 million) to the Holy Father.
It was a gesture that — according to the Vatican — reaffirms “the institute’s commitment to its mission of supporting religious and charitable works.”
According to the results for last year, the total volume of client assets managed by the IOR — which includes deposits, current accounts, assets under management, and securities in custody — rose to 5.7 billion euros (about $6.5 billion), compared with 5.4 billion euros (about $6.2 billion) the previous year.
Furthermore, the institute’s net assets increased to 731.9 million euros (about $840.5 million), representing an increase of 64.3 million euros (about $73.8 million) compared with 2023.
One of the most notable figures is the Tier 1 capital ratio, a key financial indicator that measures a bank’s financial strength and ability to absorb losses while continuing to operate. According to the data presented, it reached 69.43%, representing a 16.1% improvement compared with the previous year. This figure was due, according to the Vatican, “to a general decrease in risks and an increase in equity.”
The performance of the institute’s asset management lines was also positive: 100% of them achieved positive gross returns, and 79% outperformed their respective benchmarks. All financial services and investments were carried out in full compliance with the social doctrine of the Catholic Church, according to the report.
The IOR’s financial statement, in which account ownership is limited to Catholic institutions, ecclesiastical bodies, Vatican entities, and embassies and ambassadors accredited to the Holy See, was unanimously approved by the Superintendency Council on April 29 and audited by Mazars Italia S.p.A.
The Vatican attributed this positive performance to the net income achieved and the “numerous improvements” made. During 2024, the IOR strengthened its key functions by adding specialized personnel and making strategic investments in digital and technological infrastructure, with the aim of improving customer service.
According to the Vatican, the institute’s liquidity ratios and Tier 1 capital ratio place it among the “most solid financial institutions in the world” in terms of capitalization and liquidity.
The institution remains the only entity authorized to offer financial services in Vatican City State.
The accounts, prepared in accordance with International Accounting Standards and International Financial Reporting Standards, confirm another year of “sustained and solid growth,” according to the report.
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This story was first published by ACI Prensa, CNA’s Spanish-language news partner. It has been translated and adapted by CNA.
