Vatican’s IOR posts €51M net income in 2025, highest in 10 years, with €24.3M dividend to Pope and strong growth in client assets.
Newsroom (11/05/2026 Gaudium Press ) The Institute for the Works of Religion (IOR), commonly known as the Vatican Bank, has reported its strongest financial performance in a decade, posting a net income of €51 million for 2025, according to its Annual Report released on May 11.
The result marks a 55.5 percent increase compared to 2024 and reflects what the Institute described as a combination of improved operational performance, disciplined portfolio management, favorable market conditions, and growth in client assets.
Strong Financial Performance
The IOR’s total client assets rose to €5.9 billion in 2025, up from €5.7 billion the previous year. Key profitability indicators also showed solid gains. The Institute reported an intermediation margin of €66.3 million, significantly higher than the €51.5 million recorded in 2024.
Its interest margin increased to €32.3 million from €29.4 million, while the commission margin remained broadly stable at €26.2 million.
The Institute’s capital strength remained notably high. Its Tier 1 capital ratio—a core measure of financial stability—rose to 71.9 percent, while net assets grew by €83.4 million to reach €815.3 million.
According to the report, this strong capital and liquidity position reflects a “prudent approach” aimed at protecting clients and ensuring long-term sustainability.
Dividend to the Holy See
In line with its mission to support religious and charitable works, the IOR will distribute a dividend of €24.3 million to the Holy Father. This represents a 76.1 percent increase from the previous year.
The dividend decision was approved by the Commission of Cardinals, taking into account both the Institute’s financial performance and its capitalization requirements.
Ethical Investment Focus
The report highlights that all IOR portfolio management strategies delivered positive gross returns in 2025. The Institute continues to align its investment approach with Catholic teaching and the Social Doctrine of the Church.
In February 2026, the IOR expanded its ethical investment framework by launching two new equity indices in partnership with Morningstar. These include:
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The Morningstar IOR US Catholic Principles GR USD Index (MIORUCPG)
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The Morningstar IOR Eurozone Catholic Principles GR EUR Index (MIORECPG)
These indices are designed to serve as global benchmarks for faith-consistent investing, offering investors opportunities for returns aligned with Catholic ethical principles.
Growing Client Relationships
The Institute reported strengthened relationships with religious congregations in 2025. Growth was recorded both in the number of congregations served and in those entrusting assets to the IOR through discretionary asset management mandates.
Governance and Leadership Transition
The IOR’s financial statements were prepared in accordance with IAS-IFRS standards and included disclosures aligned with the Basel framework’s Third Pillar requirements. Deloitte & Touche issued a clean audit opinion.
The Board of Superintendence unanimously approved the financial statements on April 28, 2026, before forwarding them to the Commission of Cardinals, as required by statute.
The approval of the 2025 results also marked a leadership transition. Jean-Baptiste de Franssu concluded his term as President of the IOR, with the Institute expressing gratitude for his leadership and service. François Pauly has assumed the role as the new President.
- Raju Hasmukh with files from Vatican News
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