Is USB (U.S. Bancorp) Halal or Haram?

Based on our AAOIFI-standard shariah screening, USB is Not Halal (Haram) and is not considered permissible for Muslim investors. It failed 4 of 4 compliance screens. U.S. Bancorp's core business activity was found to be non-compliant. Its debt-to-market-cap ratio of 89.46% exceeds the ≤33% threshold. Its interest income of 72.26% exceeds the ≤5% limit. Its cash & securities ratio of 158.11% exceeds the ≤33% threshold.

U.S. Bancorp is a major American financial services holding company that provides a wide array of conventional banking products to individuals, businesses, and government entities. Its core offerings include depository services, traditional credit products, checking and savings accounts, and credit card services across its regional branch network. For Muslim investors using HalalStocks.co.uk, U.S. Bancorp is classified as Not Halal (Haram) and fails all four AAOIFI screening criteria. Because the company operates as a conventional regional bank, its fundamental business model relies on charging and paying interest (riba), making the stock entirely incompatible with Islamic investing principles. From an Islamic finance perspective, the company's financial metrics reflect its conventional banking nature, with interest income accounting for 72.26% of total revenue, severely breaching the 5% tolerance limit. Additionally, its debt-to-market cap ratio stands at a highly non-compliant 89.5%, and its cash and securities ratio is 158.1%, both well above the 33% threshold allowed by AAOIFI standards. There is no scholarly debate regarding conventional banks like U.S. Bancorp; they are universally considered haram by Islamic finance scholars. Muslim investors should entirely avoid this stock and instead look toward shariah-compliant alternatives in the real estate, technology, or healthcare sectors. U.S. Bancorp operates in the Financial Services sector under the Banks - Regional industry and is headquartered in Minneapolis, MN, US. The company is led by CEO Gunjan Kedia and employs approximately 70,000 people.

USB 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. USB passed 0 of these 4 screens.

USB 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.