BMO

Bank of Montreal

HARAM — SCREEN DOES NOT PASSstock

Is BMO Halal?

Canadian bank — conventional banking with riba.

What You Should Know

BMO's Q2 2026 statements report CAD 1,499,543 million of assets, funding/assets of 73.42%, liquidity/assets of 41.97%, receivables-plus-cash/assets of 49.82%, and net interest income of 55.06% of quarterly revenue. Core lending and interest operations are impermissible.

⚠️ Concerns

  • Interest banking
  • Consumer credit
  • Funding/assets is 73.42% and net interest income is 55.06% of Q2 revenue

Current quantitative Sharia screen

Based on Q2 2026 Report to Shareholders figures for the period ended 2026-04-30; calculated 2026-07-14.

CAD · millions
Interest-bearing debt / assets
73.42%Above limit
Below 33.333% under FTSE Yasaar

1,100,921 / 1,499,543

Cash + interest-bearing securities / assets
41.97%Above limit
Below 33.333% under FTSE Yasaar

629,410 / 1,499,543

Receivables + cash / assets
49.82%Within limit
Below 50% under FTSE Yasaar

747,092 / 1,499,543

Non-compliant income / revenue (upper bound)
55.06%Above limit
No more than 5% under FTSE Yasaar

5,268 / 9,567

FTSE Yasaar
v4.6, February 2026
Financial
Fails
Overall
Fails

Funding/assets is 73.42%, liquidity is 41.97%, receivables plus cash are 49.82% and net interest income is 55.06%; conventional banking independently fails the activity screen.

MSCI Islamic (total-assets series)
October 2024 methodology
Financial
Fails
Overall
Fails

Funding/assets and liquidity exceed the examined limits and net interest income is material; conventional banking also independently fails.

Malaysia SAC financial ratios
single 5% activity benchmark adopted November 2025
Financial
Fails
Overall
Fails

Funding, liquidity and net interest income exceed the examined limits; this is a calculation against SAC ratios, not an official SAC classification.

Market-cap denominator methods
MSCI M-Series, S&P and Dow Jones methods differ
Financial
Not calculated
Overall
Fails

Historical market-cap ratios are not stored; a different denominator cannot cure the failed conventional-banking business activity.

Business-activity disclosure

BMO is a conventional Canadian bank whose deposits, mortgages, consumer and commercial lending, treasury, capital-markets and investment-banking operations are core activities. The qualitative business screen therefore fails independently of ratio methodology.

Limitation: The report does not classify every fee, trading, advisory, insurance or subsidiary contract by Sharia status. That limitation does not change the result because conventional banking is the core business.

Purification

Purification is not calculated because BMO fails at the core conventional-banking activity level; the interest-income ratio is evidence of that failure, not a donation amount that makes ownership compliant.

Inputs, assumptions and primary sources
  • Amounts are CAD millions from BMO's Q2 2026 consolidated statement of financial position and reported results.
  • Interest-bearing funding proxy includes deposits of CAD 966,901 million, repos of CAD 125,684 million and subordinated debt of CAD 8,336 million.
  • Cash and cash equivalents plus interest-bearing deposits with banks total CAD 67,147 million; securities and securities borrowed or purchased under resale agreements total CAD 562,263 million.
  • Net loans and acceptances of CAD 679,945 million are used as the conservative receivables/financing-assets numerator.
  • Q2 reported revenue was CAD 9,567 million and reported net interest income was CAD 5,268 million; the latter is treated as a conservative upper-bound indicator of conventional interest activity.

This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.

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