Vatican City – In its 2024 Annual Report, the Institute for the Works of Religion (IOR) reaffirms its central role as the financial institution of the Holy See, highlighting positive economic results, prudent management, and full alignment with the values of the Catholic Church.
Solid Financial Results
The 2024 fiscal year closed with a net profit of €32.8 million, an increase of 7.2% compared to the previous year. This improvement is mainly due to the rise in interest margin and fees, with a net interest and fee income of €51.5 million. Net equity rose to €731.9 million (+9.6%), and the TIER 1 ratio reached a very high level of 69.4%, indicating the Institute’s strong capital position.
Ethical Management and Mission
In keeping with its mission to serve the Church worldwide, the IOR has maintained management fully aligned with Catholic ethical principles: 100% of its asset management products comply with these standards. 79% of the managed assets outperformed their respective benchmarks, demonstrating the Institute’s financial efficiency.
Service to the Global Church
The IOR serves over 12,000 clients in 112 countries, including religious orders, dioceses, Holy See entities, and individual members of the clergy. The services offered range from custody of securities and asset management to payments and basic banking operations. As of December 31, 2024, assets entrusted to the IOR amounted to €5.7 billion, including around €4 billion in asset management and securities custody.
Transparency and Supervision
The report highlights the IOR’s full compliance with international and Vatican regulations on prudential supervision and anti-money laundering. The Supervisory and Financial Information Authority (ASIF) acknowledged the “good results achieved by the IOR” and its stability. In 2024, the Institute continued the process of centralizing Vatican finances, actively cooperating with the Dicasteries of the Holy See.
Donations and Charity
In 2024, the IOR donated around €1 million to charitable works, and for the first time, the entire dividend was allocated by the Holy Father to charitable activities.
Governance and Development
The Board of Superintendence highlighted progress in technological development, including the launch of a new website and an enhanced home banking service. The Institute also began increasing the use of third-party funds, in response to client requests.
Conclusions
Despite the positive results, the Report points out certain critical issues that require attention. Legal disputes related to management prior to 2014 are still ongoing. Administrative expenses have increased, and while digital transformation has begun, it is still in progress. A slight decline in liquidity and receivables was noted, and the operational structure remains exclusively centralized within Vatican City. The absence of a lender of last resort and a deposit guarantee presents further vulnerabilities. Lastly, the client base, limited to the ecclesial sphere, restricts opportunities for expansion and risk diversification.
The 2024 Annual Report ultimately shows how the IOR continues to strengthen its position as a reliable, ethical, and transparent institution, confirming its role as an instrument in the service of the Church and the common good.
L.S.
Silere non possum