The Institute for Works of Religion (IOR) now ranks “among the world's most solid financial institutions in terms of capitalization and liquidity,” according to the annual report for 2024. The Vatican financial institution presented the document on June 11, 2025.
The Vatican's Institute for Works of Religion (IOR) is healthier, more transparent, and conforms better to international standards than before Francis' reforms.
The report, covering the last year of Francis' pontificate, highlights the reforms implemented since 2013 and presents results that show clear progress.
The IOR is the only entity authorized to carry out professional financial activities in Vatican City State. It manages the accounts of certain Vatican employees, as well as those of institutions linked to the Holy See, dioceses, and religious congregations.
The IOR also carries out asset management activities, which have developed in recent years with the aim of financing the pope's mission. However, the IOR is not a “bank” in the strict sense of the term and no longer offers credit to its users.
Growth
The IOR's accounts, audited by Forvis Mazars and approved by the institute's supervisory board, show a net profit of €32.8 million ($37.9 million in US dollars) for 2024, up 7% compared to 2023. The Institute's net assets grew by 9.6% to €731.9 million ($847.7 million), an increase of €64.3 million ($74.5 million). Operating expenses increased slightly to nearly €24 million ($27.8 million) in 2024.
The commission of cardinals, chaired by Cardinal Christoph Schönborn, approved the payment of €13.8 million ($15.9 million) in dividends to the Pope for his charitable works, a very slight increase on the previous year (€13.6 million, or $15.7 million) but significantly higher than in 2022 (€5.2 million, or $6 million). In addition, the IOR has allocated €1 million ($1.16 million) to charitable works in 2024.
The report also highlights that 79% of the assets managed by the IOR outperformed global benchmark indices.
“The IOR started 2025 on an even stronger footing and, despite a difficult market environment since President Trump's inauguration, the portfolios are generally well positioned,” said Jean-Baptiste de Franssu, chairman of the institute's supervisory board.
Improvements in customer service were also highlighted, notably thanks to the launch of a new website offering “enhanced home banking services.”
An institution reformed under Francis
In the report, IOR leaders paid tribute to Pope Francis for his ‘paternal’ support in the “intense reform work” carried out since 2014.
“The reorganization and evolution of the Institute from 2014 to the present, which I have witnessed firsthand, now make it a sure point of reference for the entire Church, which we serve throughout the world, especially in these difficult times,” Cardinal Schönborn writes in his introductory remarks.
Among the major developments is the centralization of Vatican finances, as provided for in the apostolic constitution Praedicate Evangelium published in 2022. Jean-Baptiste de Franssu nevertheless points out that this process is still “ongoing” – which suggests that some Vatican entities with financial assets have not yet entrusted them to the IOR, as requested by Pope Francis.
Since the end of Benedict XVI's pontificate, the Institute has also moved towards greater transparency. This is particularly to comply with the anti-money laundering standards laid down by the European agency Moneyval.
On May 28, 2024, Moneyval published a report praising the progress made by the Vatican in the fight against money laundering and terrorist financing. For its part, the Vatican's Financial Supervisory and Information Authority (ASIF) — the Vatican entity responsible for these matters — stated last April that the IOR is “a solid and well-organized entity.”
In the report, the Institute's leaders reaffirm their commitment to Pope Leo XIV to work “with transparency, responsibility, and full adherence to the principles of Catholic ethics, in the service of the Church's mission in the world.”
For Jean-Baptiste de Franssu, it’s “fundamental” that the IOR be a benchmark for investments “consistent with the social doctrine of the Church.”
The report specifies that 100% of the financial products offered by the IOR comply with these ethical principles.
$38.2 million recovered through legal action
Throughout its history, the IOR has been involved in several financial scandals, including the bankruptcy of the Ambrosiano bank in the 1970s. In 2022, Angelo Caloia, former president of the Institute (1989–2009), was definitively sentenced to eight years in prison for embezzlement and misappropriation of funds.
“The days when the Institute confused autonomy with independence seem long gone,” said Monsignor Battista Mario Ricca, prelate of the IOR.
In his opening remarks to the report, he referred to a real “generational change.” However, he acknowledged that “this error of perspective has led to a number of problems, some of which are still being resolved by the competent authorities.”
In the so-called “London building” affair, a major financial scandal that erupted during the pontificate of Pope Francis, the IOR played a decisive role. It was its director, Gian Franco Mammì, who was the first to report the dubious transaction. This alert led to the opening of a trial in which the IOR was a civil party.
The trial resulted in the conviction of nine people, including Cardinal Angelo Becciu, former substitute of the Secretariat of State.
In the report, Jean-Baptiste de Franssu states that the legal action taken by the IOR has enabled €33 million ($38.2 million) to be recovered since 2014, including €1.6 million ($1.85 million) in 2024 alone.
