Vatican Bank’s profit jumps 55.5% over previous year

The Institute for the Works of Religion (IOR), also known as the “Vatican Bank,” closed 2025 with a net profit of 51 million euros, an increase of 55.5% over the 32.8 million euros recorded the previous year.

The institution, founded by Pope Pius XII in 1942 and staffed by just over 100 employees, thus consolidated a trend of sustained growth.

According to the annual accounts report published Monday, May 11, at the Vatican, the result was mainly due to improved operating performance amid favorable market conditions and active, disciplined portfolio management.

Net banking income rose to 66.3 million euros, compared with 51.5 million euros in 2024, while net interest income grew to 32.3 million euros. Net commission income remained stable at about 26 million euros.

The stronger results made it possible to approve a dividend of 24.3 million euros for the Holy Father, 76.1% more than the previous year, in keeping with the institute’s mission to support religious and charitable works.

Capital strength and asset growth

One of the most notable figures was the Tier 1 capital ratio, a key financial indicator that measures a bank’s financial strength and its ability to absorb losses while continuing to operate.

The report underscored the Vatican bank’s robust position, with a Tier 1 capital ratio of 71.9%, reflecting an extraordinary level of solvency.

The figure means the bank covers 71.9% of its risk-weighted assets — loans and investments — with the highest-quality core capital, such as ordinary shares, reserves, and retained earnings. This places the institution among the strongest in the world in terms of capitalization and liquidity.

According to the results for the past fiscal year, the total volume of client assets managed by the IOR — including deposits, current accounts, managed assets, and securities held in custody — rose to 5.9 billion euros at year-end, 200 million euros more than the previous year.

The institute’s net assets also grew to 815.3 million euros, an increase of 83.4 million euros, while comprehensive income reached 97.2 million euros, up 25% year over year.

Investments aligned with Catholic social teaching

The IOR emphasized that all of its financial activity is carried out in full coherence with the principles of Catholic social teaching. All of its portfolio management strategies recorded positive returns in 2025, within an investment approach that promotes only options compatible with the Catholic faith.

In this context, the institute strengthened its offerings by combining its own capabilities with the collaboration of more than 11 international asset managers. In February, together with Morningstar, it also launched two new equity indexes designed as benchmarks for Catholic investments worldwide.

Clean audit opinion and change in presidency

The IOR’s financial statements — for an institution whose accounts are limited to Catholic institutions, clergy, Vatican employees, and embassies and ambassadors accredited to the Holy See — received a “clean” opinion from Deloitte & Touche and were approved April 28 by the Board of Superintendence and the Commission of Cardinals.

The fiscal year also coincided with a change in the institute’s presidency: Jean-Baptiste de Franssu ended his mandate after the approval of the financial statements and was succeeded by François Pauly.

With 115 employees and about 12,000 clients in more than 110 countries — all linked to the Church — the IOR reaffirmed its role as a financial instrument at the service of the Church’s mission under a model that combines prudent growth, security, and client focus.

This story was first published by ACI Prensa, the Spanish-language sister service of EWTN News. It has been translated and adapted by EWTN News English.

Source: https://www.ewtnnews.com/vatican/vatican-bank-s-profit-jumps-55-5-over-previous-year