The positive development of defined benefit (DB) plans at the pension fund of the Istituto per le Opere di Religione (IOR) was one of the main factors boosting the Vatican bank’s net assets to €815.3m last year.
Actuarial reserves of DB plans provided by the IOR increased from €4.65m in 2024 to €12.46m in 2025, according to the institute’s 2025 financial statement.
At the same time, income generated through the DB plans rose to €17.51m in 2025 from €5.87m in 2024.
Actuarial gains and income on pension liabilities, coupled with an increase in the value of held-to-collect-and-sell (HTCS) securities, resulted in an 11.4% year-on-year increase in the Vatican bank’s net assets in 2025 to €815.3m.
Net profit reached €51m, the highest level in 10 years for the IOR, up 55.5% compared with 2024.
“The significant increase in net profit was primarily driven by improved operating performance, reflecting active and disciplined portfolio management as well as favourable market conditions,” the IOR said in a statement.
Profitability increased “substantially”, further supported by the positive movement in pension fund reserves, the Vatican bank added.
Overall profitability rose by 25% in 2025 to €97.2m. IOR’s assets under management, assets under custody and client deposits reached €5.9bn last year, compared with €5.7bn in 2024.
In light of the past year’s financial results, the Commission of Cardinals, which checks whether the IOR is run according to statutory provisions, approved the distribution of a dividend of €24.3m to Pope Leo XIV, up 76.1% compared with 2024.
The number of congregations acting as clients of the IOR, and those mandating the institute to manage assets, also increased last year.
To further promote Catholic investment worldwide, the Vatican bank launched two equity benchmarks with Morningstar in February.
Redefining governance
The IOR has, in recent years, moved to redefine the governance of its pension fund, introducing management, administration and control structures and processes, alongside an asset management policy.
The asset management policy is set by the management and control committee, which also performs oversight functions.
Members of the committee include general director Gian Franco Mammì, other individuals with expertise in financial and pension management, and representatives of the control functions.
The pension scheme’s funding ratio improved, with assets increasing by €19.3m to €163.7m, while liabilities fell year-on-year to €89.5m from €100.4m.
