IOR assets grow to €5.7 billion as Vatican finances still struggle

Introduction
The Institute for the Works of Religion, better known as the Vatican Bank, reported that its assets climbed to €5.7 billion in 2024. The figure represents one of the highest levels in its recent history and highlights the bank’s unusually strong stability compared to broader Vatican finances. Yet the growth stands in sharp contrast with the financial struggles of the Holy See itself, which continues to grapple with deficits, debts, and declining donor confidence.

IOR stability
The IOR, which serves Catholic institutions and dioceses around the world, has undergone extensive reform in the past decade. Officials cite a high Tier 1 capital ratio of 69 percent and conservative investment strategies as the backbone of its resilience. By avoiding high-risk speculation, the bank has built a fortress balance sheet that has attracted renewed deposits from religious orders and dioceses. The expansion to €5.7 billion signals institutional trust in the IOR as a safe custodian of Catholic wealth.

The wider Vatican picture
Despite the bank’s growth, the Vatican’s overall financial health remains precarious. The central budget continues to post annual deficits, with costs for diplomacy, heritage preservation, and clerical salaries outpacing revenue from museums and real estate. Donations to Peter’s Pence have also continued to fall, reflecting persistent skepticism among the faithful. This creates a paradox in which the Vatican Bank looks strong, but the Holy See itself remains financially vulnerable.

Implications for reform
Observers argue that the contrast between the IOR’s stability and the Vatican’s deficits exposes deeper structural issues. While the bank operates under strict regulation and external audits, other institutions such as APSA and the Secretariat of State remain prone to opacity and mismanagement. Analysts suggest that the broader Vatican system could learn from the bank’s conservative approach, though political resistance within the Curia continues to complicate reform.

Conclusion
The rise of IOR assets to €5.7 billion demonstrates that parts of the Vatican’s financial system are capable of stability and growth. Yet the persistence of deficits in the wider budget raises questions about whether reform is truly systemic or merely compartmentalized. For donors and regulators, the challenge remains ensuring that the Vatican’s overall finances match the resilience of its bank, a task that will test Pope Leo XIV’s commitment to transparency and accountability.