The Archdiocese of Malta registered a loss of €8.8 million last year, in a significant reversal of the positive financial results posted the prior year.
A breakdown of 2022 finances published by the Archdiocese on Tuesday showed that the Church’s investments were especially painful in 2022, with the Archdiocese realising a €2.4 million investment loss and also factoring in a €2.95 million provision for impairment on its investments that year.
The Archdiocese acknowledged that it was a “tumultuous” year for its investments and attributed that to rising interest rates, inflation and the war in Ukraine.
Nevertheless, the Archdiocese earned €8.39 million in investment income, with €5.19 million of that coming from APS Bank dividends. Investment income was significantly higher than the €5.9 million registered in 2021 in part due to the lifting of a regulator-ordered freeze on dividend payments during the COVID-19 pandemic.
APS Bank's decision to sell shares for the first time in its history meant the Archdiocese's shareholding in the bank fell from just under 80% to 55%.
Income from collections and donations outstripped investment income, reaching €8.96 million last year.
Despite the tough financial year, the Archdiocese more than doubled its donations to individuals and increased its subsidies to entities by 20 per cent that year. It spent €1.2 million on donations (versus €560,000 in 2021), including those provided by parishes to support individuals in need.
The Archdiocese’s finances in 2022 were further dented by the €900,000 one-off expense that Pope Francis’ visit to Malta cost to organise, with inheritances and fundraising income also down from 2021, resulting in a further €1.7 million shortfall.
More positively, the Archdiocese saw a 17 per cent increase in collections and donations received by parishes, driven by a rise in Mass attendance and reintroduction of titular feasts following the COVID-19 pandemic
Income from property rentals rose by €0.42 million, or 31%, while the sale of property dropped to €1.26 million.
Fees and other income from residents declined by 19% due to the closure of one home for the elderly and the others not operating at full capacity. Church dues increased by 15% as a result of more marriages compared to 2021.
Although the number of visitors to the Mdina Cathedral Museum and Mosta Basilica nearly tripled, income figures remained below pre-pandemic levels.
Government funding increased by €2.57 million, of which €0.84 million went primarily towards salary increases at the Archbishop’s Seminary and Sacred Heart schools. Government COVID-19 assistance reached €1.59 million in 2022, up from €1.24 million in the previous year.
Expenditure rose by €7.26 million. Salary costs accounted for 60% of total expenditure, amounting to €33.62 million. Operational and maintenance costs, including the conservation and restoration of ecclesiastical heritage, increased by €3.41 million, reaching €16.28 million.
The Archdiocese paid €2.5 million in taxes in 2022.
It employed 1,302 laypersons that year, of which 1,095 were full-timers. In addition to these employees, the Archdiocese provided remuneration to 249 diocesan priests (compared to 254 in 2021).
Administrative Secretary Michael Pace Ross highlighted various Church initiatives aimed at continuing its mission and supporting those most in need. Among these initiatives were the establishment of the Foundation for Affordable Housing, the distribution of food by parishes to individuals in need, as well as work with children and adolescents, survivors of domestic violence and other forms of abuse, migrants, and those seeking rehabilitation from substance abuse and other vices.
He thanked employees, volunteers, and all the Maltese for their support and appealed for donations at church.mt/donate.
The Archdiocese of Malta comprises the Maltese Church’s Central Fund (including Mass Office and the Ecclesiastical Tribunal), Taqsima Finanzi, parishes (excluding those run by religious orders), the Metropolitan Chapter, homes for children and the elderly, homes for persons with a disability, the Archbishop’s Seminary and Sacred Heart schools, media services, cloistered monasteries, and other entities (including Caritas, the Migrants’ Commission, the Cana Movement, and the Catholic Institute).