NYSE Shariah screener · October 2026
Is Mitsubishi UFJ Financial Group, Inc. (MUFG) Halal?
Mitsubishi UFJ Financial Group, Inc. · NYSE: MUFG · Financials
The short answer
No - Mitsubishi UFJ Financial Group, Inc. (MUFG) fails this Shariah stock screen at all three gates. MUFG, Japan's largest banking group based in Tokyo, has conventional interest-based commercial banking as its core business - a haram activity under AAOIFI-style screens. Interest-bearing borrowings of about 123 trillion yen (about $831B) are about 312% of its ~$266B market cap ($22.62/share, October 1, 2026), far above the ~33% ceiling, and interest income of 8,613,865 million yen is about 72.6% of FY2026 revenue (11,867,264 million yen), far above the 5% ceiling. Zoya independently rates MUFG not Shariah-compliant. This is a factual screen, not a religious ruling - consult a qualified scholar for personal rulings.
Gate 1 — Business activity: FAIL
Mitsubishi UFJ Financial Group, Inc. (NYSE: MUFG), headquartered in Tokyo, Japan, is a bank holding company and Japan's largest banking group. Per its Form 20-F for the fiscal year ended March 31, 2026 (filed July 6, 2026; US GAAP), it operates MUFG Bank, Ltd., Mitsubishi UFJ Trust and Banking, MUFG Morgan Stanley Securities, asset management, and trust banking - retail, commercial, corporate, and investment banking, including loans, settlement, foreign exchange, and trading. Business-screen implication (factual): the core business is conventional interest-based commercial banking - a haram activity under AAOIFI-style screens, consistent with this pipeline's precedent for conventional banks (Bank of America, Citigroup, Capital One, Wells Fargo). Context only: MUFG runs small Islamic-banking windows (Kuala Lumpur since 2008, Dubai since 2015, and a Labuan branch approval announced October 1, 2026) - a niche alongside overwhelmingly conventional operations; it does not change the business-gate result. Gate 1 fails. Facts only.
Gate 2 — Debt and cash: FAIL
Per MUFG's Form 20-F for the fiscal year ended March 31, 2026 (US GAAP; yen in millions), interest-bearing borrowings were short-term borrowings 101,155,572 million yen plus current portion of long-term debt 3,001,675 million yen plus long-term debt 18,856,586 million yen = about 123,013,833 million yen (about 123 trillion yen, about $831B at about 148 yen per dollar). Customer deposits of 260,755,340 million yen are the bank's operating funding, counted separately. Against a market cap of about $266B ($22.62 per share, October 1, 2026, times about 11.87 billion shares outstanding), debt / market cap is about 312% - far above the ~33% ceiling. Even long-term debt alone (18,856,586 million yen, about $127B) is about 48% of market cap. Gate 2 fails. Facts only.
Gate 3 — Non-compliant income: FAIL
Per MUFG's FY2026 Form 20-F (US GAAP; yen in millions), total interest income was 8,613,865 million yen (loans including fees 4,569,238M; deposits in other banks 1,074,496M; investment securities interest 730,302M plus dividends 168,451M; trading account assets 1,368,774M; call loans and funds sold 32,235M; receivables under resale agreements and securities borrowing 670,369M). Against total revenue of 11,867,264 million yen, interest income is about 72.6% of revenue - far above the 5% non-compliant income ceiling. Net interest income (3,684,254 million yen) is about 31.0% of revenue - also far above 5%. Third-party screener Zoya independently reports interest income of about 9,250,062,030,000 yen against revenue of about 14,247,237,772,000 yen (64.93%) - the same conclusion. Gate 3 fails. Facts only.
Key figures used
- Business: bank holding company - Japan's largest banking group; MUFG Bank, trust banking, securities, asset management; retail/commercial/corporate/investment banking; HQ Tokyo, Japan
- FY2026 (year ended Mar 31, 2026; US GAAP): total revenue 11,867,264M yen; interest income 8,613,865M yen; net interest income 3,684,254M yen; net income attributable 1,729,359M yen (record)
- Debt: ~123,013,833M yen interest-bearing borrowings (short-term 101,155,572M + current LT 3,001,675M + LT 18,856,586M yen) - about 312% of ~$266B market cap ($22.62 x ~11.87B shares, Oct 1, 2026), far above the ~33% ceiling
- Interest income: 8,613,865M yen - about 72.6% of 11,867,264M yen revenue, far above the 5% ceiling (Zoya: ~9,250,062,030,000 / ~14,247,237,772,000 = 64.93%)
- Business gate: conventional interest-based banking is the core business - haram activity under AAOIFI-style screens (precedent: BAC, Citigroup, Capital One, Wells Fargo)
- Third-party screeners: Zoya rates NOT Shariah-compliant; Musaffa - no verifiable rating; ShariaPortfolio - no coverage found
- Material: FY2026 record profits (BoJ rate normalisation); Islamic-banking windows in Kuala Lumpur (since 2008), Dubai (since 2015), Labuan approval Oct 1, 2026 - small niche, does not change the business-gate result
- Listing: NYSE-listed ADR (ticker MUFG, since 2001; also Tokyo/Nagoya 8306); live quotes Oct 1-2, 2026 - no delisting
Frequently asked questions
What does Mitsubishi UFJ Financial Group do?
Mitsubishi UFJ Financial Group, Inc. (NYSE: MUFG), based in Tokyo, Japan, is a bank holding company and Japan's largest banking group. Per its Form 20-F for the fiscal year ended March 31, 2026, it operates MUFG Bank, Ltd., Mitsubishi UFJ Trust and Banking, MUFG Morgan Stanley Securities, asset management, and trust banking - retail, commercial, corporate, and investment banking, including loans, settlement, foreign exchange, and trading. Its shares trade on the NYSE as American Depositary Shares (ticker MUFG, listed since 2001; also listed in Tokyo and Nagoya as 8306). Its core business is conventional interest-based commercial banking.
Why does Mitsubishi UFJ Financial Group fail this Shariah screener?
Mitsubishi UFJ Financial Group fails this Shariah screener at all three gates. Gate 1 (business activity): conventional commercial banking - interest-based lending is the core business, a haram activity under AAOIFI-style screens. Gate 2 (debt): interest-bearing borrowings of about 123 trillion yen (about $831B) are about 312% of its ~$266B market cap, far above the ~33% ceiling (long-term debt alone is about 48%). Gate 3 (non-compliant income): interest income of 8,613,865 million yen is about 72.6% of FY2026 total revenue (11,867,264 million yen), far above the 5% ceiling. Result: FAIL. This is a factual screen, not a religious ruling - consult a qualified scholar for personal rulings.
What is Mitsubishi UFJ Financial Group's interest-bearing debt ratio?
Per MUFG's Form 20-F for the fiscal year ended March 31, 2026 (filed July 6, 2026; US GAAP; yen in millions), interest-bearing borrowings were short-term borrowings 101,155,572 million yen plus current portion of long-term debt 3,001,675 million yen plus long-term debt 18,856,586 million yen = about 123,013,833 million yen (about 123 trillion yen, about $831B at about 148 yen per dollar). Customer deposits of 260,755,340 million yen are the bank's operating funding, counted separately. Against a market cap of about $266B ($22.62 per share, October 1, 2026, times about 11.87 billion shares outstanding), debt / market cap is about 312% - far above the ~33% ceiling. Even long-term debt alone (18,856,586 million yen, about $127B) is about 48% of market cap. Gate 2 fails. Facts only.
How much interest income does Mitsubishi UFJ Financial Group earn?
Per MUFG's FY2026 Form 20-F (US GAAP; yen in millions), total interest income was 8,613,865 million yen (loans including fees 4,569,238M; deposits in other banks 1,074,496M; investment securities interest 730,302M plus dividends 168,451M; trading account assets 1,368,774M; call loans and funds sold 32,235M; receivables under resale agreements and securities borrowing 670,369M). Against total revenue of 11,867,264 million yen, interest income is about 72.6% of revenue - far above the 5% non-compliant income ceiling. Net interest income (3,684,254 million yen) is about 31.0% of revenue - also far above 5%. Third-party screener Zoya independently reports interest income of about 9,250,062,030,000 yen against revenue of about 14,247,237,772,000 yen (64.93%) - the same conclusion. Gate 3 fails. Facts only.
Do Zoya, Musaffa, or ShariaPortfolio cover Mitsubishi UFJ Financial Group?
Zoya covers MUFG at zoya.finance/stocks/mufg and rates it NOT Shariah-compliant ('MUFG is not Shariah-compliant and therefore not considered halal to invest in'), citing interest income of about 9,250,062,030,000 yen against revenue of about 14,247,237,772,000 yen (64.93%). Musaffa: no public MUFG rating was found via search - honestly reported as no verifiable coverage, not invented. ShariaPortfolio: no MUFG coverage was found - honestly reported as no coverage found, not invented.
Sources
- MUFG Form 20-F for fiscal year ended March 31, 2026 (filed July 6, 2026; US GAAP; yen in millions): total revenue 11,867,264M yen; interest income 8,613,865M yen; net interest income 3,684,254M yen; interest-bearing borrowings ~123,013,833M yen (short-term 101,155,572M + current LT 3,001,675M + LT 18,856,586M); customer deposits 260,755,340M yen; ~11.87B shares outstanding
- Zoya MUFG stock page (2026): rates MUFG NOT Shariah-compliant ('MUFG is not Shariah-compliant and therefore not considered halal to invest in'); quotes interest income ~9,250,062,030,000 yen against revenue ~14,247,237,772,000 yen (64.93%)
- Finnhub MUFG live market data (Oct 2, 2026): NYSE (XNYS), price ~$22.62 - live quote, no delisting
Screened 2026-10-02 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).