X
UCA News

World

Vatican Bank posts profit despite tough pandemic times

The bank reported a net profit of 36.4 million euros ($44.2 million), down from 38 million euros in 2019

AFP, Rome

AFP, Rome

Published: June 11, 2021 12:51 PM GMT

Updated: June 11, 2021 01:01 PM GMT

Vatican Bank posts profit despite tough pandemic times

Pope Francis is presented with gifts as he meets with attendees upon arrival for the weekly general audience at San Damaso courtyard in The Vatican on June 9, 2021. (Photo: AFP/Vatican Media)

The Institute of Religious Works (IOR), better known as the Vatican's bank, said Friday its profits remained relatively stable last year despite "very challenging" coronavirus-related circumstances. 

The IOR posted a 2020 net profit of 36.4 million euros ($44.2 million) down from 38 million euros in 2019, the bank said in a statement.

It added that three-quarters of the sum, around 27 million euros, will be turned over to Pope Francis -- who has a personal charity fund -- or other targeted Holy See entities.
Subscribe to your daily free newsletter from UCA News
Thank you. You are now signed up to Daily newsletter

The IOR, which called 2020 "a very challenging year for the world economy," routinely subsidizes other Vatican bodies.

Last year's contribution was over twice the size of 2019's subsidy of 12 million euros, an indication of the Vatican's need for cash during the coronavirus crisis.

The bank said the remaining 25 percent of its 2020 profits will be used to increase equity, which at the end of last year stood at 645.9 million euros.

The bank also said it had boosted investments in technology, including to strengthen its cybersecurity defences.

The Vatican includes a large governing machine, known as the Roman Curia, bankrolled by donations, rental income from the Church's real estate holdings, and ticket sales from the Vatican Museums.

But with the coronavirus pandemic, many funding streams dried up.

A high-ranking Vatican official told AFP in February that donations in 2020 fell by 25 percent, while proceeds from the museums -- which were closed for long periods during the year -- collapsed by 85 percent or about 100 million euros.

The Curia's deficit increased to 90 million euros, from 11 million euros in 2019, the source said.

However, this year's profit is higher than the previous four years.

The bank reported a profit of $19.8 million in 2018, down from its $36 million profit of 2017.

The bank's assets—valued at about $5.6 billion at the end of 2018—consisted of investments and deposits from almost 15,000 account holders. 

Founded nearly 80 years ago, the IOR has been embroiled in a long series of political and financial scandals in past years, including accusations of money laundering and associations with mafia groups.

Former pope Benedict XVI sought, however, to begin cleaning up the organization as part of Vatican financial transparency reforms, which have been continued by Francis.

 

Also Read

UCA News Podcast
UCAN Ad
slavery-in-asia
 
Catholicism in China - Contribute to help UCA News
Catholicism in China - Contribute to help UCA News
UCA News Catholic Dioceses in Asia
UCA News Catholic Dioceses in Asia
UCA News Catholic Dioceses in Asia