NYSE Shariah screener · October 2026
Is Bank of America Corporation (BAC) Halal?
Bank of America Corporation · NYSE: BAC · Financials
The short answer
No — Bank of America Corporation (BAC) fails this Shariah stock screen at the business-activity gate. It is a conventional bank holding company (Consumer Banking, Global Wealth & Investment Management, Global Banking, Global Markets): interest-based lending and deposit-taking are its core business, and conventional banking is a prohibited industry under AAOIFI-style business screens, excluded outright regardless of balance-sheet strength. The numbers confirm it: FY2025 interest income of $138,566M is about 72.33% of gross revenue ($191,567M), versus a 5% non-compliant-income ceiling. The debt gate is not assessed for a bank (liabilities are deposits). All three third-party screeners that cover BAC — Zoya, Musaffa and ShariaPortfolio — rate it not Shariah-compliant.
Gate 1 — Business activity: FAIL
Bank of America Corporation (NYSE: BAC) is one of the world's largest financial institutions, headquartered in Charlotte, North Carolina. Per its FY2025 Form 10-K it operates four business segments: Consumer Banking (deposit accounts, mortgage, home-equity, credit-card and auto loans, small-business lending), Global Wealth & Investment Management (Merrill Wealth Management and Bank of America Private Bank), Global Banking (corporate lending, underwriting, advisory, treasury services) and Global Markets (sales and trading across fixed income, credit, currency, commodities and equities). Business-screen implication (factual): Bank of America is a conventional bank holding company — interest-based lending and deposit-taking are its core business, not an incidental activity. Under AAOIFI-style business-activity screens, conventional banking is a prohibited industry excluded outright, regardless of balance-sheet strength. Gate 1 fails. Facts only.
Gate 2 — Debt and cash: Not assessed — business gate decisive
Not assessed — the business gate is decisive. For a conventional bank, liabilities are overwhelmingly customer deposits (the raw material of banking), not corporate borrowing, so a debt-to-market-cap ratio is not meaningful. For completeness: FY2025 long-term debt was $317,816M (total assets $3,410,394M; common shares outstanding 7,212,464,345) against a market cap of about $375B (~$53.6 on October 1, 2026) — a ratio far above the ~33% ceiling if it were applied. The screen already fails at Gate 1. Facts only.
Gate 3 — Non-compliant income: FAIL
Bank of America's 4Q25 Supplemental Information (consistent with the FY2025 10-K, filed February 25, 2026) reports total interest income of $138,566M against gross revenue of $191,567M (interest income $138,566M + noninterest income $53,001M) — about 72.33% of revenue, massively above the 5% non-compliant income ceiling. By the alternate convention, net interest income of $60,096M is 53.14% of revenue net of interest expense — same conclusion. This is the expected profile of a conventional bank and confirms the Gate 1 failure. Gate 3 fails. Facts only.
Key figures used
- Business: conventional bank holding company — Consumer Banking, Global Wealth & Investment Management (Merrill/Private Bank), Global Banking, Global Markets; Charlotte, NC
- Business gate: FAIL — interest-based lending and deposit-taking are the CORE business; conventional banking is a prohibited industry under AAOIFI-style screens, excluded outright
- Debt gate not assessed (business gate decisive): for banks, liabilities are customer deposits, not borrowing; LT debt $317,816M vs ~$375B mktcap shown for completeness only
- Interest income: $138,566M vs FY2025 gross revenue $191,567M — ≈72.33% of revenue, massively above the 5% ceiling (confirms Gate 1)
- Total assets $3,410,394M; common shares 7,212,464,345 (Dec 31, 2025); ~$53.6 (Oct 1, 2026)
- Zoya: not Shariah-compliant (Sep 2026); Musaffa: fails screen (conventional banking = riba); ShariaPortfolio: not Shariah Compliant (Banks NEC)
Frequently asked questions
What does Bank of America do?
Bank of America Corporation (NYSE: BAC) is one of the world's largest financial institutions, headquartered in Charlotte, North Carolina. Per its FY2025 10-K it operates four business segments: Consumer Banking (deposit accounts, mortgage, home-equity, credit-card and auto loans, small-business lending), Global Wealth & Investment Management (Merrill Wealth Management and Bank of America Private Bank), Global Banking (corporate lending, underwriting, advisory, treasury services) and Global Markets (sales and trading across fixed income, credit, currency, commodities and equities).
Why does Bank of America fail this Shariah stock screen?
Bank of America fails this screen at the first gate — the business-activity gate. It is a conventional bank holding company: interest-based lending and deposit-taking are its core business, not an incidental activity. Under AAOIFI-style business screens, conventional banking is a prohibited industry excluded outright, regardless of balance-sheet strength. The numbers confirm it: FY2025 interest income of $138,566M is about 72.33% of gross revenue ($191,567M), versus a 5% non-compliant-income ceiling. All three third-party screeners that cover BAC — Zoya, Musaffa and ShariaPortfolio — rate it not Shariah-compliant. This is a factual screen, not a religious ruling — consult a qualified scholar for personal rulings.
What is Bank of America's debt ratio?
The debt gate is not assessed for Bank of America because the business gate is decisive: as a conventional bank, its liabilities are overwhelmingly customer deposits (the raw material of banking), not corporate borrowing, so a debt-to-market-cap ratio is not meaningful. For completeness, FY2025 long-term debt was $317,816M against a market cap of about $375B — a ratio that would be far above the ~33% ceiling if it were applied, but the screen already fails at Gate 1.
What is Bank of America's non-compliant income ratio?
Bank of America's 4Q25 Supplemental Information (consistent with the FY2025 10-K) reports total interest income of $138,566M against gross revenue of $191,567M (interest income $138,566M + noninterest income $53,001M) — about 72.33% of revenue, massively above the 5% non-compliant income ceiling. (By the alternate convention, net interest income of $60,096M is 53.14% of revenue net of interest expense — same conclusion.) This is the expected profile of a conventional bank and confirms the Gate 1 business-screen failure.
Do Zoya, Musaffa, or ShariaPortfolio cover Bank of America?
All three cover BAC, and all three say not compliant. Zoya (zoya.finance/stocks/bac): "As of September 2026, BAC is not Shariah-compliant and therefore not considered halal to invest in," citing the same FY2025 figures (revenue $191,567M, interest income $138,566M = 72.33%). Musaffa's Academy (2026): "All major banks, including JPMorgan Chase, Bank of America, Wells Fargo, Goldman Sachs, and Morgan Stanley fail the screen because conventional banking earns from riba (interest)." ShariaPortfolio's screener page: "Bank of America Corp is not Shariah Compliant because of its involvement in Banks (NEC) and related activities."
Sources
- Bank of America — 4Q25 Supplemental Information (official IR publication, consistent with FY2025 10-K filed Feb 25, 2026): income statement (interest income $138,566M; noninterest income $53,001M), balance sheet (total assets $3,410,394M; LT debt $317,816M; shares 7,212,464,345)
- Bank of America — FY2025 Form 10-K (filed Feb 25, 2026; SEC EDGAR HTML)
- Zoya — Bank of America (BAC) stock page (not Shariah-compliant, Sep 2026)
- Musaffa Academy — List of halal stocks in the S&P 500 (major banks fail the screen: conventional banking earns from riba)
- ShariaPortfolio screener — BAC (Bank of America Corp is not Shariah Compliant: Banks NEC)
Screened 2026-10-01 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.
Screened with our two-gate Shariah screening methodology (business-activity gate, then AAOIFI-style financial ratios).