The bank earned â‚¬69.3m (Â£49m) last year, compared to just â‚¬2.9m in 2013, when it was hit by bad investments and clean-up costs.
Last year the management was replaced as part of an overhaul ordered by the Pope to stamp out corruption.
The bank has promised to improve its returns to customers.
"The main focus is on fundamentally improving our overall client service standards and further professionalising our asset management services," IOR chairman Jean-Baptiste de Franssu said in a statement.
As part of the overhaul, the bank pledged to screen all its accounts, bringing in anti-money laundering experts to carry out the task. As a result it has closed more than 4,000 accounts since May 2013, most of which were dormant, but 554 of which were closed because they did not meet the bank's new standards for clients.
The IOR moves money around the world to finance Catholic missions and provides banking services for the Pope, clergy and religious orders.
The Vatican bank, officially known as the Institute for Religious Works (IOR), has seen a sharp jump in its profits for 2014.