The Institute for the Works of Religions releases its 2025 Annual Report, and reveals a 51 million euro net income and a dividend to the Pope of 24.3 million euro.

Vatican News

The Institute for the Works of Religion published its Annual Report for 2025 on Monday, May 11.

The IOR’s financial statements for the fiscal year ended December 31, 2025 were prepared in accordance with IAS-IFRS standards, together with the disclosure corresponding to the Third Pillar of the Basel framework.

According to the report, the IOR recorded net income of €51 million in 2025, an increase of 55.5% compared with the previous year and the highest result in the last ten years.

The Institute said the result was supported by improved operating performance, active and disciplined portfolio management, favourable market conditions, and an increase in client asset volumes.

Total client assets reached €5.9 billion, compared with €5.7 billion in 2024.

The IOR also reported an interest margin of €32.3 million, up from €29.4 million in 2024, while the commission margin stood at €26.2 million, broadly in line with the previous year.

The intermediation margin rose to €66.3 million, compared with €51.5 million in 2024.

The Institute’s Tier 1 capital ratio—a key measure of a financial institution’s core capital strength compared with its risk-weighted assets—increased to 71.9%, while net assets rose by €83.4 million to €815.3 million.

The report states that the IOR’s capital and liquidity position reflects a prudent approach aimed at safeguarding clients and ensuring long-term sustainability.

In light of the 2025 results and the Institute’s capitalization needs, the Commission of Cardinals approved the distribution of a €24.3 million dividend to the Holy Father, an increase of 76.1% compared with 2024, in keeping with the IOR’s mission to support works of religion and charity.

The report also notes that all IOR portfolio management strategies recorded positive gross returns and that the Institute continues to promote investments consistent with the principles of the Catholic faith and the Social Doctrine of the Church.

The IOR said its relationship with religious congregations was further strengthened during 2025, with growth both in the number of Congregations served and in those entrusting assets through asset management mandates.

The financial statements received a clean audit opinion from Deloitte & Touche and were unanimously approved by the Board of Superintendence on 28 April 2026, before being forwarded to the Commission of Cardinals as required by the Statutes.

In February 2026, the Institute also launched two new equity indices in collaboration with Morningstar, designed as benchmarks for Catholic investments worldwide.

The Morningstar IOR US Catholic Principles GR USD index (ticker: MIORUCPG), and the Morningstar IOR Eurozone Catholic Principles GR EUR index (ticker: MIORECPG), offer investors a way to earn an ethical return on invested capital.

With the approval of the 2025 financial statements, Jean-Baptiste de Franssu concluded his term as President of the IOR.

The Institute expressed gratitude for his service, leadership, and commitment. François Pauly has taken office as the new President.