Vatican bank quadruples net earnings

VATICAN CITY
Vatican Insider

[Vatican Bank annual report]

The Vatican has published the first-ever annual report for the Vatican bank. Its director, Ernst von Freyberg, says the bank is ready for inspection

VATICAN INSIDER STAFF
ROME

The Vatican took another step in its efforts to be more financially transparent by publishing a first-ever annual report for the Vatican bank on Tuesday. It comes as Italian prosecutors investigate alleged money-laundering there, a Vatican monsignor remains in detention and the Pope himself probes the problems that have brought such scandal to the institution.

Net earnings at the bank, known as the Institute for Religious Works, rose more than four-fold to 86.6 million euros ($116.95 million) in 2012, the report said. More than 50 million euros of that was given to the pope for his charitable works. The improvement in earnings was driven by profits made on the value of securities that the bank held and sold — net trading income rose to 51.1 million euros from a loss of 38.2 million euros in 2011.

The picture may not be so rosy for 2013, with rising interest rates cutting into profits and millions of euros earmarked for the IOR’s ongoing transparency process, which has involved hiring outside legal, financial and communications experts to revamp its procedures, review its client base and remake its image.

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