The Institute for the Works of Religion (IOR), known as the Vatican bank, closed the 2025 fiscal year with a net profit of 51 million euros, the best result in the last ten years and an increase of 55.5% compared to the previous fiscal year.
According to the official balance published by the IOR itself and reported by Vatican News, the Cardinal Commission also approved delivering to the Pope a dividend of 24.3 million euros, 76.1% higher than in 2024, intended to support the religious and charitable works of the Holy See.
Beyond the figures, the results reflect the consolidation of the long process of cleanup, transparency, and financial reform driven in the Vatican over the last decade following the numerous economic scandals that affected the Holy See.
A record profit and strong financial solidity
The IOR notably increased its revenues during 2025.
The intermediation margin reached 66.3 million euros, compared to 51.5 million the previous year, while net equity grew to 815.3 million euros.
The entity currently manages nearly 5.9 billion euros belonging mainly to religious congregations, dioceses, Catholic institutions, and Vatican bodies.
One of the most striking indicators is the Tier 1 ratio - the main international index of banking solvency - which reached 71.9%, an exceptionally high figure compared to most international financial entities.
As explained by The Pillar, this high capitalization responds to the peculiar situation of the Vatican, which lacks a central bank or a “lender of last resort.”
This obliges the IOR to maintain reserves far superior to the usual ones in order to address potential financial crises or extraordinary needs.
The end of a decade of reforms
The publication of this balance also coincides with the handover from Jean-Baptiste de Franssu at the head of the IOR’s Supervisory Board, thus closing a decisive stage in the transformation of the Vatican financial institution.
De Franssu assumed the presidency in 2014, at one of the most delicate moments for the Vatican bank, after years marked by accusations of opacity, irregularities, and financial scandals.
Under his mandate, the IOR began to submit to international controls, external audits, and financial transparency standards.
The 2025 balance has once again received an audit “without observations” from Deloitte & Touche.
The Pillar recalls that during these years the IOR played a central role in some of the largest financial investigations in the Vatican, especially in the so-called London building scandal.
The U.S. media outlet notes that De Franssu and general director Gianfranco Mammí rejected in 2018 a loan request of 150 million euros requested by the Secretariat of State to refinance that controversial real estate operation.
The IOR’s refusal ended up triggering the judicial investigation that resulted in the conviction of Cardinal Angelo Becciu and other Vatican officials in the first instance.
Leo XIV modifies part of Francis’s model
As also highlighted by The Pillar, Pope Francis strengthened the central role of the IOR during his final years, ordering that the dicasteries and bodies of the Curia manage their investments through the Vatican bank.
However, Leo XIV subsequently introduced some changes, allowing various Vatican bodies to once again choose their own managers and financial instruments.
Despite this, the balance shows that the IOR continues to be one of the most solid and strategic financial institutions in the Vatican.
Investments “consistent with Catholic ethics”
The IOR also highlighted that all its investment lines closed 2025 with positive results and reiterated that its financial products are managed in accordance with the principles of the Church’s Social Doctrine.
In February 2026, the entity launched two new stock indices together with Morningstar, specifically designed as a reference for Catholic investments worldwide.
The new president of the IOR will be the Luxembourg financier François Pauly, a former member of the Supervisory Board with extensive experience in major European banking.
Before his appointment, Pauly held positions of responsibility within the Edmond de Rothschild group, specialized in private banking and management of large fortunes.
The Vatican had already announced his designation last March as the successor to Jean-Baptiste de Franssu as part of the process of continuity in the financial reforms driven over the last decade.