Catholic church registers €9 million deficit in 2022

The Catholic church in Malta registered a net deficit of €8.8 million in 2022, reversing a surplus of €3.4 million recorded the previous year.

A significant contribution to the deficit (€5.2 million) was due to losses from investments that were impacted by high inflation, rising interest rates and the Ukraine war.

The accounts for the Archdiocese of Malta were published on Tuesday with Curia Administrative Secretary Michael Pace Ross describing 2022 as “a tumultuous year for investments”.

The church’s investment income is primarily derived from dividends it receives as the largest shareholder of APS Bank. In 2022, APS Bank issued shares to the public, which saw the Archdiocese’s stake drop from 80% to 55%.

The accounts show that the Archdiocese received €8.4 million in income from investments, including €5.2 million in dividends from APS Bank. Investment income accounted for 16% of all income.

Pace Ross said the Archdiocese will gradually over time further reduce its shareholding in APS. “The church has been investing in the bank for 110 years but it does not have the capital to continue financing the bank’s growth, which is why over time it will further reduce its shareholding in favour of smaller shareholders willing to invest in the bank,” he said.

The Archdiocese comprises 100 entities, including 55 parishes run by diocesan priests, the Metropolitan Chapter, and homes for children and the elderly.

Pace Ross said operating income increased by €1.6 million, partly attributable to higher donations as pandemic restrictions were lifted.

Church collections and donations received by parishes increased by 17% as Mass attendance grew again and feasts returned after COVID restrictions were lifted.

Fees and income from residents declined by 19% due to the closure of one home for the elderly and others not operating at full capacity. Church dues increased by 15% as a result of more marriages last year when compared to 2021.

Government funding at €18.7 million accounted for 36% of the Archdiocese’s income, which primarily covers teachers’ salaries in church schools.

Expenditure up

Pace Ross said expenditure increased to €55.8 million last year from €48.5 million a year earlier.

Remuneration to priests and lay persons at €33.6 million accounted for 60% of all expenditure. The Archdiocese employs 1,095 full-timers and 207 part-timers.

The Archdiocese paid €2.5 million in taxes in 2022.

The Archbishop’s Curia in particular registered a net deficit of €2 million, a slight improvement over the €2.3 million deficit registered in 2021.

Pace Ross said the Curia forked out €900,000 for the papal visit and subsidised its media arm with €300,000.