NYSE Shariah screener · October 2026
Is Sumitomo Mitsui Financial Group, Inc. (SMFG) Halal?
Sumitomo Mitsui Financial Group, Inc. · NYSE: SMFG · Financials
The short answer
No - Sumitomo Mitsui Financial Group, Inc. (SMFG) fails this Shariah stock screen at all three gates. SMFG, the Tokyo-based Japanese financial holding company, has conventional interest-based lending and deposits as its core business - a haram activity under AAOIFI-style screens. Total liabilities of 290,914,647 million yen are about 1,190% of its ~$161.3B market cap ($25.28/ADR, October 2, 2026), far above the ~33% ceiling, and interest income of 6,928,743 million yen is about 143.1% of FY2026 total operating income (4,841,783 million yen), far above the 5% ceiling. Zoya independently rates SMFG not Shariah-compliant. This is a factual screen, not a religious ruling - consult a qualified scholar for personal rulings.
Gate 1 — Business activity: FAIL
Sumitomo Mitsui Financial Group, Inc. (NYSE: SMFG), founded in 2002 and headquartered in Tokyo, Japan, is a Japanese financial holding company established through a share transfer from Sumitomo Mitsui Banking Corporation (SMBC), its core banking unit. Per its Form 20-F for the fiscal year ended March 31, 2026 (filed June 26, 2026; accession 0001193125-26-283871), principal subsidiaries are SMBC (commercial banking), Sumitomo Mitsui Card Company, SMBC Leasing, SMBC Nikko Securities, and The Japan Research Institute (~123,000 employees). Business-screen implication (factual): interest-based lending and deposits are the core business - a haram activity under AAOIFI-style screens, consistent with this pipeline's MUFG, Wells Fargo, Bank of America, Citigroup, Capital One, and Santander precedents. Nuance: SMBC commenced Islamic finance services in Malaysia (approved by Malaysian authorities February 10, 2014) - a minor line in a conventional megabank, not the core business. Gate 1 fails. Facts only.
Gate 2 — Debt and cash: FAIL
Per Sumitomo Mitsui Financial Group's Form 20-F for the fiscal year ended March 31, 2026 (accession 0001193125-26-283871; yen millions), total equity and liabilities were 309,203,641 million yen and total equity was 18,288,994 million yen, giving total liabilities of 290,914,647 million yen. Against a market cap of about $161.3B (ADR price $25.28, October 2, 2026, times about 6.38B ADSs outstanding - 7,654,996,280 common shares after the October 1, 2026 2-for-1 split, 6/5 shares per ADR), total liabilities are about 1,190% of market cap - far above the ~33% ceiling (the ratio is so far over that no FX-rate precision matters; at 151.5 yen/USD, liabilities are about $1.92T). Gate 2 fails. Facts only.
Gate 3 — Non-compliant income: FAIL
Per Sumitomo Mitsui Financial Group's FY2026 Form 20-F (yen millions), interest income was 6,928,743 million yen, interest expense was 4,096,058 million yen, and net interest income was 2,832,685 million yen. Against total operating income of 4,841,783 million yen, interest income is about 143.1% of total operating income - far above the 5% non-compliant income ceiling (net interest income alone is 58.5% of total operating income). Third-party screener Zoya independently reports interest income of 7,660,468 million yen (70.78% of its combined total; a different methodology) - the same FAIL conclusion. Gate 3 fails. Facts only.
Key figures used
- Business: Japanese financial holding company (est. 2002, HQ Tokyo) - core unit SMBC (commercial banking) plus card, leasing, securities, research; ~123,000 employees; SMBC's Malaysia Islamic finance line is minor
- FY2026 (20-F, filed Jun 26, 2026; yen millions): total operating income 4,841,783M; interest income 6,928,743M; interest expense 4,096,058M; net interest income 2,832,685M; profit attributable to shareholders 1,137,557M
- Debt: 290,914,647M yen total liabilities (Mar 31, 2026) - about 1,190% of ~$161.3B market cap ($25.28 ADR x ~6.38B ADSs, Oct 2, 2026), far above the ~33% ceiling
- Interest income: 6,928,743M yen - about 143.1% of 4,841,783M yen total operating income, far above the 5% ceiling (Zoya: 7,660,468M / combined total = 70.78%)
- Business gate: conventional interest-based megabank is the core business - haram activity under AAOIFI-style screens (precedent: MUFG, Wells Fargo, BAC, Citigroup, Capital One, Santander)
- Third-party screeners: Zoya rates 'not Shariah-compliant' (Sep 2026); Musaffa - no coverage found; ShariaPortfolio - no coverage found
- Material: 2-for-1 stock split effective October 1, 2026 (record Sep 30, 2026); 157 yen annualized dividend approved; BIS capital ratios at Jun 30, 2026 - total 16.24%, Tier 1 15.04%, CET1 12.63%; Q3 FY2026 results via Aug 14, 2026 6-K
- Listing: NYSE-listed ADR (ticker SMFG; 1 ADR = 6/5 shares post-split), registered in 20-F; also TSE 8316; live quote $25.28 Oct 2, 2026 - no delisting
Frequently asked questions
What does Sumitomo Mitsui Financial Group do?
Sumitomo Mitsui Financial Group, Inc. (NYSE: SMFG), founded in 2002 and headquartered in Tokyo, Japan, is a Japanese financial holding company established through a share transfer from Sumitomo Mitsui Banking Corporation (SMBC), its core banking unit. Per its Form 20-F for the fiscal year ended March 31, 2026, principal subsidiaries are SMBC (commercial banking), Sumitomo Mitsui Card Company, SMBC Leasing, SMBC Nikko Securities, and The Japan Research Institute. Its shares trade on the NYSE as American Depositary Shares (ticker SMFG); each ADR represents 3/5 of one common share (ratio changed September 27, 2024, before the split; 6/5 post the October 1, 2026 2-for-1 split). In FY2026 it reported total operating income of 4,841,783 million yen and profit attributable to shareholders of 1,137,557 million yen.
Why does Sumitomo Mitsui Financial Group fail this Shariah screener?
Sumitomo Mitsui Financial Group fails this Shariah screener at all three gates. Gate 1 (business activity): conventional megabank - interest-based lending and deposits are the core business, a haram activity under AAOIFI-style screens (consistent with this pipeline's MUFG, Wells Fargo, Bank of America, Citigroup, Capital One, and Santander precedents). Gate 2 (debt): total liabilities of 290,914,647 million yen against a ~$161.3B market cap are about 1,190% of market cap, far above the ~33% ceiling. Gate 3 (non-compliant income): interest income of 6,928,743 million yen is about 143.1% of FY2026 total operating income (4,841,783 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 Sumitomo Mitsui Financial Group's interest-bearing debt ratio?
Per Sumitomo Mitsui Financial Group's Form 20-F for the fiscal year ended March 31, 2026 (filed June 26, 2026; accession 0001193125-26-283871; yen millions), total equity and liabilities were 309,203,641 million yen and total equity was 18,288,994 million yen, giving total liabilities of 290,914,647 million yen. Against a market cap of about $161.3B (ADR price $25.28, October 2, 2026, times about 6.38B ADSs outstanding - 7,654,996,280 common shares after the October 1, 2026 2-for-1 split, 6/5 shares per ADR), total liabilities are about 1,190% of market cap - far above the ~33% ceiling (the ratio is so far over that no FX-rate precision matters; at 151.5 yen/USD, liabilities are about $1.92T). Gate 2 fails. Facts only.
How much interest income does Sumitomo Mitsui Financial Group earn?
Per Sumitomo Mitsui Financial Group's FY2026 Form 20-F (yen millions), interest income was 6,928,743 million yen, interest expense was 4,096,058 million yen, and net interest income was 2,832,685 million yen. Against total operating income of 4,841,783 million yen, interest income is about 143.1% of total operating income - far above the 5% non-compliant income ceiling (net interest income alone is 58.5% of total operating income). Third-party screener Zoya independently reports interest income of 7,660,468 million yen (70.78% of its combined total; a different methodology) - the same FAIL conclusion. Gate 3 fails. Facts only.
Do Zoya, Musaffa, or ShariaPortfolio cover Sumitomo Mitsui Financial Group?
Zoya covers Sumitomo Mitsui Financial Group at zoya.finance/stocks/smfg and rates it 'not Shariah-compliant' ('As of September 2026, SMFG is not Shariah-compliant and therefore not considered halal to invest in'), quoting FY2026 revenue of 10,822,885,578,000 yen and interest income of 7,660,467,593,000 yen (70.78% of the combined total). Musaffa: no SMFG stock page was found in targeted searches - honestly reported as no coverage found, not invented. ShariaPortfolio: no public per-stock SMFG rating exists - honestly reported as no coverage found, not invented.
Sources
- Sumitomo Mitsui Financial Group Form 20-F for FY2026 (fiscal year ended March 31, 2026; filed June 26, 2026; accession 0001193125-26-283871; commission file no. 001-34919; yen millions): American Depositary Shares - SMFG - New York Stock Exchange; 3,827,498,140 common shares outstanding; interest income 6,928,743M; interest expense 4,096,058M; net interest income 2,832,685M; total operating income 4,841,783M; total equity and liabilities 309,203,641M; total equity 18,288,994M
- Zoya SMFG stock page (Sep 2026): rates SMFG 'not Shariah-compliant' ('As of September 2026, SMFG is not Shariah-compliant and therefore not considered halal to invest in'); quotes FY2026 revenue 10,822,885,578,000 yen and interest income 7,660,467,593,000 yen (70.78%)
- Simply Wall St SMFG company page (Sep 2026): ticker SMFG, NYSE, sponsored ADR listed Feb 2003; listing market cap US$163.914b; 3.76b shares outstanding
- Finnhub SMFG live market data (Oct 2, 2026): NYSE, price ~$25.28 - 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).