Is RF (Regions Financial Corporation) Halal or Haram?

Based on our AAOIFI-standard shariah screening, RF is Not Halal (Haram) and is not considered permissible for Muslim investors. It failed 3 of 4 compliance screens. Regions Financial Corporation's core business activity was found to be non-compliant. Its interest income of 73.62% exceeds the ≤5% limit. Its cash & securities ratio of 159.78% exceeds the ≤33% threshold.

Regions Financial Corporation is a major regional financial holding company that provides a wide array of conventional banking services to both individual and corporate clients. Operating through its Corporate Bank, Consumer Bank, and Wealth Management segments, it offers commercial real estate lending, equipment lease financing, and securities underwriting. For Muslim investors using HalalStocks.co.uk, RF is classified as Not Halal (Haram) and fails three out of the four critical AAOIFI screens. As a conventional bank, its primary business model relies heavily on interest-based transactions, automatically disqualifying it from a halal portfolio regardless of its operational success. From a financial screening perspective, the bank's reliance on prohibited income is glaring, with interest income making up 73.62% of its total revenue, far exceeding the strict 5% limit. Additionally, its cash and interest-bearing securities account for an enormous 159.8% of its market cap, violating the 33% threshold, even though its debt-to-market cap ratio technically passes at 20.3%. There is no scholarly debate regarding conventional banks like Regions Financial Corporation; they are universally considered haram by Islamic finance scholars. Muslim investors must strictly avoid this stock and instead look toward Islamic banks or compliant equities in non-financial sectors. Regions Financial Corporation operates in the Financial Services sector under the Banks - Regional industry and is headquartered in Birmingham, AL, US. The company is led by CEO John Turner Jr. and employs approximately 19,644 people.

RF 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. RF passed 1 of these 4 screens.

RF was last screened on 2026-04-29. 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.