Finance

New report suggests long-term worries for Vatican finances

Published

1 year ago

July 29, 2024

New report suggests long-term worries for Vatican finances

ROME – A new analysis of the Vatican’s financial situation by an Italian news outlet contains both good and bad news for papal finances, pointing to relative success in efforts to contain ballooning deficits but also seemingly irreversible long-term declines.

According to an overview of the most recent financial data published July 26 by La Repubblica, Italy’s most widely read daily newspaper, the Vatican’s annual operating deficit grew by roughly $5.4 million in 2023, a lower figure than in past years. The report suggested the result was due to the impact of both spending cuts and also efforts to generate more realistic appraisals of the value of Vatican properties.

Among the cost-cutting measures adopted in recent years include new limits on hiring and contracting, as well as efforts to increase the rents collected on some Vatican properties which are leased commercially and to put others up for sale.

The report cited a recently completed financial statement approved by the Vatican’s Council for the Economy, led by German Cardinal Reinhard Marx. According to the report, the deficit for 20234 amounted to over $90 million, with income of $1.25 billion and expenses of $1.34 billion.

Income in 2023 actually grew by $30 million, according to the financial statement, but expenses also went up by $36 million due to the impact of inflation.

The statement also indicated that the size of the 2023 deficit could still shrink somewhat depending on what the actual performance of the Vatican’s investment portfolios match projections.

The Repubblica analysis also found that income from the annual Peter’s Pence collection, which supports the works of the pope, amounted to $52.5 million in 2023, an increase over the $47.2 million collected in 2022.

Nonetheless, the net gain from the collection was offset by the fact that the fund’s reserves were once again draw upon in 2023 to support the Roman Curia, the Vatican’s chief administrative bureaucracy, to the tune of almost $98 million.

Moreover, the long-term trend in income from the fund is clearly downwards. According to the Repubblica analysis, collections dropped 23 percent overall from 2015 to 2019, and are poised for further reductions.

To some extent, those declines may be related to financial scandals, such as the aborted $400 million purchase of a former Harrods warehouse in London that resulted in the criminal convictions of nine figures for fraud, including Italian Cardinal Angelo Becciu. Given that Peter’s Pence also is sometimes viewed as a referendum on the popularity of the current pope, various controversies surrounding Franci may also have had an impact.

More basically, however, most observers believe the core factor is that much of the Peter’s Pence income derives from wealthier nations, where Catholic populations, and therefore Catholic giving, have been in decline for decades.

Declines in income are especially worrying for Vatican accountants today, given concerns about an aging workforce and unfunded pension obligations down the line. There’s also alarm that rising costs and declining income could eventually compel the Vatican to either trim its payroll or cut salaries, or both, at time when both the volume and the complexity of the workload from around the world is increasing rapidly.

The financial statement reportedly approved by the Council for the Economy concerns the Holy See, and mostly excludes both the Government of the Vatican City State, which is responsible for administration of the physical territory – including income, for example, from the Vatican Museums – and also excludes the Institute for the Works of Religion, the so-called “Vatican bank,” which for 2023 showed $33.2 million in income and a total of $5.9 billion in client assets.

However, it’s considered improbable that income from either the city state or the IOR will be sufficient in coming years to offset the Vatican’s broad deficits, leaving it unclear for the moment how the losses will be sustained.

Related Topics:Catholic independent news vatican

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Finance

Simply Asset Finance reaches $2.6bn loan origination milestone in 2025

Published

2 hours ago

December 15, 2025

Press Room

Simply Asset Finance reaches .6bn loan origination milestone in 2025

Improvements in the company’s own technology and stronger results in various regions contributed to increased efficiency in lending operations. Credit: Kunakorn Rassadornyindee / Shutterstock.com.

Simply Asset Finance has reported that its total loan origination reached £2bn ($2.6bn) in 2025, following its growth and lending activity during the period.

During 2025, the company’s gross loan book increased to £543m and its customer base grew to 13,000.

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Additional digital platforms came online, and commercial loans were added to the range of available finance solutions.

Improvements in the company’s own technology and stronger results in various regions contributed to increased efficiency in lending operations and a broader local presence for SME clients.

In July, Simply Asset Finance introduced Kara, an AI-powered virtual agent.

Kara uses the company’s past data to enhance user interactions, streamline internal processes, and speed up decisions on lending applications.

Simply Asset Finance CEO Mike Randall said: “Our growth this year has built on the momentum of 2024, and reaching £2bn is a clear milestone for the business. All our channels have driven that progress, with rising demand for specialist lending helping us expand our footprint and support even more SMEs across the UK.

“Despite a year of challenging economic conditions, small businesses have remained resilient and ready to invest. Kara has been central to meeting demand quickly and efficiently –  and we expect her value to our customers will only grow.

“As we head into 2026, we’re focused on carrying this momentum forward and working with even more brilliant businesses to unlock their potential.”

Last month, Simply Asset Finance became a Patron lender of the National Association of Commercial Finance Brokers (NACFB).

This partnership is aimed at supporting the broker community in the UK and increasing access to asset finance and leasing products through wider distribution.

The NACFB is known as an independent UK trade association for commercial finance intermediaries, promoting cooperation between lenders and brokers across the sector.

Finance

Baker McKenzie Welcomes Finance & Projects Principal Matthias Schemuth in Singapore | Newsroom | Baker McKenzie

Published

14 hours ago

December 14, 2025

Press Room

Baker McKenzie Welcomes Finance & Projects Principal Matthias Schemuth in Singapore | Newsroom | Baker McKenzie

Baker McKenzie today announced that leading project finance lawyer Matthias Schemuth has joined the Firm’s Singapore office* as a Principal and Asia Pacific Co-Head of Projects in its Finance & Projects practice, alongside Partner Jon Ornolffson in Tokyo.

Matthias joins the Firm from DLA Piper, bringing more than 20 years of experience in the energy and infrastructure sectors across Asia Pacific. He advises sponsors, developers, commercial banks, multilateral lending agencies, and export credit agencies on the structuring and financing of large-scale projects. His practice also spans international banking, structured commodity and trade finance, with a strong focus on emerging markets. Matthias has been consistently recognised by Chambers Asia Pacific and Who’s Who Legal as a leading project finance practitioner.

James Huang, Managing Principal of Baker McKenzie Wong & Leow in Singapore, said: “We are excited to welcome Matthias to our team. His expertise and proven record in managing teams will be invaluable as we expand our regional and global finance offerings for clients.”

Emmanuel Hadjidakis, Asia Pacific Chair of Baker McKenzie’s Banking & Finance Practice, commented: “Asia Pacific is seeing strong momentum in infrastructure development, energy transition investments, and cross-border project financing, much of it centred in Singapore. Having Matthias on board will further enhance our ability to help clients seize opportunities in the region’s evolving energy and infrastructure markets.”

Steven Sieker, Baker McKenzie’s Asia Chief Executive, added: “Matthias’s appointment underscores Baker McKenzie’s continued commitment to investing in exceptional talent across key markets to support our clients in navigating today’s increasingly complex business and regulatory environment.”

Matthias said: “I’m thrilled to join Baker McKenzie and contribute to its strong growth in Asia Pacific. The Firm’s global reach and local depth provide an unparalleled platform for delivering innovative projects and financing solutions to clients in this dynamic region.”

With more than 2,700 deal practitioners in more than 40 jurisdictions, Baker McKenzie is a transactional powerhouse. The Firm excels in complex, cross-border transactions; over 65% of our deals are multijurisdictional. The teams are a hybrid of ‘local’ and ‘global’, combining money-market sophistication with local excellence. The Firm’s Banking & Finance lawyers are ranked in more jurisdictions than any other firm by Chambers.

Matthias’s hire continues the expansion of Baker McKenzie’s global team. His joining follows the recent arrivals of Carole Turcotte in Toronto; Tom Oslovar in Palo Alto; Jenny Liu in New York and Palo Alto; Helen Johnson, Mark Thompson, Nick Benson, Kevin Heverin, James Wyatt and Michal Berkner in London; Jan Schubert in Frankfurt; Todd Beauchamp and Charles Weinstein in Washington DC; Dan Ouyang, Winfield Lau, and Ke (Ronnie) Li in Beijing, Shanghai, and Hong Kong; and Alexander Stathopoulos in Singapore.

*Baker McKenzie Wong & Leow is the member firm of Baker McKenzie in Singapore

Finance

3 finance stocks to buy on rising 10-year Treasury rates

Published

1 day ago

December 14, 2025

Press Room

3 finance stocks to buy on rising 10-year Treasury rates

The Federal Reserve gave investors an early Christmas present by lowering interest rates by 25 basis points (i.e., 0.25%) marking its third rate cut this year. In the past, a change like this in the “long end” of the interest rate yield curve has triggered a predictable, investable pattern. Typically, this pattern would be bearish for finance stocks, particularly banks—investors would buy bank stocks when rates rose and sell them as rates fell….