Is JPMorgan (JPM) Halal?
Screener: No — JPMorgan fails Shariah screening as of October 2026. It is a conventional bank — a prohibited industry under the business-activity gate. Net interest income was $25.511 billion in Q2 2026, or 44.5% of total net revenue of $57.347 billion. The ratios below are shown for transparency; the gate-one failure decides the result.
Gate one: Business activity
JPMorgan Chase describes itself as a leading financial services firm. It reports three business segments: Consumer and Community Banking (branches, deposits, mortgages, credit cards, auto loans), Commercial and Investment Bank (investment banking, lending, payments, markets and securities services — formed January 2024), and Asset and Wealth Management (funds, private banking, brokerage, custody).
The core business is conventional banking: taking interest-bearing deposits and lending at interest, plus trading, market-making, and card services. Net interest income — overwhelmingly interest-based earnings — was $25.511 billion in a single quarter, 44.5% of total net revenue. The revenue model is structurally built on interest (riba). Result: FAIL at gate one — conventional banking is a prohibited industry under the AAOIFI-style two-gate methodology, regardless of any financial ratio.
Gate two: Financial ratios
AAOIFI-style screening applies three ratio tests (thresholds shown; Dow Jones Islamic Market methodology uses 33% where AAOIFI uses 30% — the ceilings below use the stricter 30%):
| Ratio | JPMorgan (Oct 2026) | Ceiling | Result |
|---|---|---|---|
| Long-term debt ÷ market cap | 52.4% ($460.523B long-term debt on ~$879.4B market cap; total borrowings $490.475B = 55.8%) | < 30% | FAIL |
| Cash + interest-earning deposits ÷ market cap | 35.3% ($309.811B on ~$879.4B market cap) | < 30% | FAIL |
| Net interest income ÷ total net revenue | 44.5% ($25.511B on $57.347B, Q2 2026) | < 5% | FAIL |
Figures: 10-Q for the quarter ended June 30, 2026 (filed August 6, 2026). Ratios are shown for transparency only — the gate-one failure decides the screening result. Market cap from the September 30, 2026 close of $330.83 × 2,658,186,195 shares outstanding. For banks, “cash” is cash and due from banks ($24.720B) plus interest-earning deposits with banks ($285.091B).
What this means if you hold it
The common guidance for a stock that fails screening: sell the holding (scholars differ on timing when it is at a loss — ask a qualified scholar), and purify the interest-derived share of any dividends or gains received rather than keeping them. Our purification calculator can help with the arithmetic; a qualified scholar can advise on the specifics of your situation.
What could change the screener
- A transformation of the business model. JPMorgan would have to stop being a conventional bank — not a realistic near-term scenario, but the gate-one test is about what the company does, so any structural change would trigger a fresh screen.
- Nothing else. No ratio improvement can overturn a gate-one failure under this methodology.
We re-screen on a quarterly cadence — the screener above reflects the latest quarterly report and September 2026 market data.
Next steps
We don't publish buying guidance for stocks that fail screening. If you're building a Shariah-compliant portfolio instead, start from our full list of screened stocks, read the two-gate methodology, or ask a scholar about your specific situation.
Screened with our two-gate Shariah screening methodology (business-activity gate, then AAOIFI-style financial ratios).
FAQ
Is JPMorgan stock halal to invest in?
As of October 2026: no, it fails Shariah screening. JPMorgan is a conventional bank — a prohibited industry at gate one — and 44.5% of its revenue is net interest income. This is a screening result, not a religious ruling.
Why does business activity matter more than the ratios?
The two-gate method checks what a company does before checking its numbers. A prohibited core business — like conventional banking — fails at gate one, so the financial ratios can’t rescue the result. The ratios are shown on this page for transparency only.
I already own JPM — what do scholars commonly advise?
The common guidance: sell the holding (scholars differ on timing when it’s at a loss), and purify the interest-derived share of any dividends or gains rather than keeping them. For your specific situation, ask a qualified scholar.
Are all banks treated the same way?
This page only screens JPMorgan Chase, a conventional bank. Banks structured to avoid interest are assessed differently by scholars — that’s a separate question for a qualified scholar, not something this screener decides.
What if JPMorgan’s business changes?
Gate one tests what the company does. If JPMorgan ever transformed away from conventional banking, it would get a fresh screen — but no ratio improvement alone can overturn a gate-one failure. We re-check quarterly.