Bank’s profits soar

Profits AT the Vatican bank soared 20-fold in 2014 as Pope Francis’ clean-up of financial malpractice nears completion, writes Hannah Roberts.

At the once-scandal-plagued bank, profits last year rebounded from €2.9 million to €69.3m, after 2013 results that had been hit by “extraordinary” operating ex­penses, the institution said in its annual report. In 2013 the bank had suffered a loss in income after being forced to pay consultants and other experts to help it meet international standards to fight money laundering.

“The improvement was mainly due to the performance of the results from trading securities and the decrease in operating costs of an extraordinary nature,” the bank, formally known as the Institute for Religious Works (IOR), said.

The bank, which was once associated with money laundering, has been undergoing drastic reforms under Pope Francis’ leadership. He appointed Cardinal George Pell to oversee the process.

The bank has toughened regulatory standards and closed thousands of accounts, which were either inactive or deemed not to meet new standards required. In the annual report it said it closed 554 accounts that were not considered to fit with the IOR’s profile of appropriate clients. It closed another 2,600 inactive accounts between May 2013 and 31 December 2014; 274 were in the process of being shut down, it said.

Bank president Jean-Baptiste de Franssu said: “The bank has now promised to focus on improving returns for customers after several years of reforms aimed at improving its governance.”