Is NWG.L (NatWest Group plc) Halal or Haram?

Based on our AAOIFI-standard shariah screening, NWG.L is Not Halal (Haram) and is not considered permissible for Muslim investors. It failed 4 of 4 compliance screens. NatWest Group plc's core business activity was found to be non-compliant. Its debt-to-market-cap ratio of 145.52% exceeds the ≤33% threshold. Its interest income of 86.12% exceeds the ≤5% limit. Its cash & securities ratio of 199.02% exceeds the ≤33% threshold.

NatWest Group plc is one of the United Kingdom's largest banking institutions, serving millions of customers through well-known brands like NatWest, Royal Bank of Scotland, and Ulster Bank. Its operations span retail banking, where it provides mortgages and personal loans, to commercial banking and institutional markets. The group is deeply embedded in the UK financial system, offering everything from basic current accounts to complex corporate financing solutions. For Muslim investors, NatWest Group is classified as Not Halal (Haram) because it fails every single AAOIFI screening metric. The primary issue is the nature of its business; as a conventional bank, its core profit engine is built on charging and paying interest (riba), which is strictly prohibited in Islamic finance. Consequently, the stock fails the business activity screen immediately, regardless of its financial ratios. Financially, the company's structure further solidifies its non-compliant status. The bank reports interest income accounting for over 86% of its total revenue , vastly exceeding the permissible 5% threshold for incidental non-halal income. Additionally, its financial health relies heavily on leverage , with a debt-to-market cap ratio of 145.5% and cash-and-securities ratio of 199.0%, both of which are well above the 33% limits set by Shariah standards . There is no scholarly debate regarding conventional banks like NatWest; they are universally considered impermissible investments due to their reliance on riba. Investors seeking exposure to the financial sector should instead look for Shariah-compliant banks, fintech companies, or asset managers that operate without interest-based lending models. NatWest Group plc operates in the Financial Services sector under the Banks - Diversified industry and is headquartered in Edinburgh, GB. The company is led by CEO John-Paul Thwaite and employs approximately 59,400 people.

NWG.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. NWG.L passed 0 of these 4 screens.

NWG.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.