Is STT (State Street Corporation) Halal or Haram?

Based on our AAOIFI-standard shariah screening, STT is Not Halal (Haram) and is not considered permissible for Muslim investors. It failed 4 of 4 compliance screens. State Street Corporation's core business activity was found to be non-compliant. Its debt-to-market-cap ratio of 70.62% exceeds the ≤33% threshold. Its interest income of 51.46% exceeds the ≤5% limit. Its cash & securities ratio of 345.98% exceeds the ≤33% threshold.

State Street Corporation is a major global financial services provider specializing in institutional asset management. The company offers a wide array of investment servicing products, including custody, product accounting, foreign exchange trading, master trust administration, and conventional loan and lease financing. For Muslim investors, State Street Corporation is classified as Not Halal (Haram) as it fails every AAOIFI screening criterion. Because its core operations are deeply rooted in conventional, interest-based financial services and asset management, the stock cannot be held in a Shariah-compliant portfolio. The company's financial structure fundamentally violates Islamic principles, notably through its massive interest income which accounts for 51.46% of total revenue, far exceeding the 5% maximum allowed. Furthermore, State Street carries significant leverage with a debt-to-market cap ratio of 70.6% and cash and securities totaling 346.0% of its market cap, completely breaching AAOIFI's 33% thresholds. Given its status as a foundational pillar of the conventional banking and institutional investment system, there is no scholarly debate regarding its non-compliant status. Halal investors must strictly avoid STT and look toward Islamic financial institutions or permissible equity sectors for asset allocation. State Street Corporation operates in the Financial Services sector under the Asset Management industry and is headquartered in Boston, MA, US. The company is led by CEO Ronald Philip O'Hanley and employs approximately 52,711 people.

STT 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. STT passed 0 of these 4 screens.

STT 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.