Is LLOY.L (Lloyds Banking Group plc) Halal or Haram?

Based on our AAOIFI-standard shariah screening, LLOY.L is Not Halal (Haram) and is not considered permissible for Muslim investors. It failed 3 of 4 compliance screens. Lloyds Banking Group plc's core business activity was found to be non-compliant. Its debt-to-market-cap ratio of 233.52% exceeds the ≤33% threshold. Its interest income of 75.08% exceeds the ≤5% limit.

Lloyds Banking Group is one of the UK's largest financial institutions , serving millions of customers through iconic brands like Lloyds Bank, Halifax, Bank of Scotland, and Scottish Widows. Its operations are deeply embedded in the British economy, spanning retail banking, commercial lending, and insurance, with a heavy focus on providing mortgages , credit cards, and personal loans to individuals and small businesses. For Muslim investors, this stock is classified as Haram (Not Halal) because it fails three out of four AAOIFI screening criteria. The primary issue is the nature of its business; as a conventional bank, its core function is to lend money at interest, which is strictly prohibited ( Riba) in Islamic finance. Consequently, the company fails the business activity screen outright, making it unsuitable for a Sh ariah-compliant portfolio. Financially, the metrics reinforce this non-compliance, with interest income accounting for over 75% of total revenue, shattering the permissible 5% limit for incidental non-halal income. Furthermore, the bank is highly leveraged with a Debt-to-Market Cap ratio of 233.5%, far above the 33% threshold allowed, reflecting the capital-intensive nature of conventional banking that relies heavily on borrowing and lending . Lloyds Banking Group plc operates in the Financial Services sector under the Banks - Regional industry and is headquartered in London, GB. The company is led by CEO Charles Alan Nunn and employs approximately 61,228 people.

LLOY.L was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. LLOY.L passed 1 of these 4 screens.

LLOY.L was last screened on 2026-03-01. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.