The Administration of the Patrimony of the Apostolic See (APSA), which manages the Vatican's investments and real estate, on July 28 reported a profit of 62 million euros (around $63 million) in 2024, up 16 million euros from 2023, according to an AP report.

Of this, 10.5 million euros in profit came from good returns on investments, while its real estate profits equalled its 2023 results, AP reported, citing data from the APSA's 2024 report. This is good news for the Holy See, as Pope Leo XIV battles an ongoing financial crisis, AP noted.

Created in 1967, the APSA has since 2021 published annual reports on its holdings, under previous Pope Francis' direction encouraging transparency.

According to the APSA's 2024 balance sheet report, 46.1 million euros of the profit will be used to fund the Holy See's operating costs and the Roman Curia its central government. This is eight million euros more than last year, as per the AFP.

The AFP also calculated the overall profit increase to be over 35 per cent year-on-year (YoY).

The report noted that the Vatican has faced a 50-60 million euro structural deficit for years; besides a 1 billion euro pension fund shortfall.

Reuters cited sources saying that the shortfall in the Vatican's pension fund was in 2022 estimated to total some 631 million euros. There has been no official update to this figure, but insiders said it has only ballooned.

The issue has been among the pressing matters facing new Pope Leo. The Chicago-born math major's first weeks in office were filled with meetings about the Vatican's various financial entities, the report added.

According to the AP, the Vatican has 4,234 real estate properties in Italy and 1,200 more in London, Paris, Geneva and Lausanne, Switzerland. Of these, 2 per cent are rented at fair market value; while around 70 per cent generate no income because they house Vatican or other church offices; and the remaining 11 per cent are rented at reduced rents to Vatican employees.

In 2024, these properties only generated 35 million euros in profit, essentially equaling the profit of 2023.

Financial analysts believe the Vatican can unlock potential revenue through its undervalued real estate. A big challenge however is that APSA has little to no money to invest in renovations that would justify higher rents.

The APSA noted that revenues have been flat due to the higher costs of maintaining properties in 2024, 3.8 million euros was spent on maintenance alone, AP report said.

APSA added that it had reassessed the total value of its holdings down to 2.6 billion euros from 2.74 billion euros, Reuters reported.

The AFP report further noted that in June, there was an increase in donations made to the pope to support charitable missions rising from 52 million euros in 2023 to 58 million euros in 2024.

(With inputs from AP, AFP and Reuters)

Key Takeaways

  • The Vatican's profit increase signals a potential turnaround in its financial crisis.
  • Pope Leo XIV faces the challenge of addressing a longstanding budget deficit and pension fund shortfall.
  • A significant portion of the Vatican's real estate remains underutilized, indicating potential for future revenue growth.