COF

Capital One Financial Corp.

HARAM — SCREEN DOES NOT PASSstock

Is COF Halal?

Credit card bank — core business is interest-based lending (riba).

What You Should Know

Capital One's March 31, 2026 Form 10-Q reports interest-bearing funding/assets of 75.12%, identifiable interest-bearing liquidity/assets of 24.72%, receivables plus cash/assets of 63.28%, and net interest income/revenue of 79.74% ($12,145 million of $15,231 million). Its core credit-card, deposit, auto-lending and consumer-banking model is conventional interest-based finance. The Discover acquisition expands the combined card and network footprint but does not change the riba-based business-activity failure.

⚠️ Concerns

  • Core credit-card and consumer-lending revenue is riba
  • Interest-bearing deposits and borrowings are central funding sources
  • Discover acquisition expands conventional card exposure
  • Consumer debt cycles, fair lending, fee practices and collections require ethical review

Current quantitative Sharia screen

Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-13.

USD · millions
Interest-bearing debt / assets
75.12%Above limit
Below 33.333% under FTSE Yasaar

513,005 / 682,905

Cash + interest-bearing securities / assets
24.72%Within limit
Below 33.333% under FTSE Yasaar

168,808 / 682,905

Receivables + cash / assets
63.28%Above limit
Below 50% under FTSE Yasaar

432,139 / 682,905

Non-compliant income / revenue
79.74%Above limit
No more than 5% under FTSE Yasaar

12,145 / 15,231

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

Interest-bearing funding is 75.12% of assets, identifiable liquidity is 24.72%, receivables plus cash are 63.28%, and net interest income is 79.74% of total revenue. The conventional-banking business activity also fails.

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

Interest-bearing funding and receivables plus cash exceed the examined total-assets limits; identified liquidity is also elevated. Conventional banking independently fails the business-activity screen. This is a calculation against the named method, not an index-membership claim.

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

Interest-bearing funding is 75.12% of assets and identifiable liquidity is 24.72%; net interest income is 79.74% of total revenue. This is a calculation against SAC ratios, not an official classification of a U.S.-listed security.

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 calculated, but a different denominator cannot cure the independently failed conventional-banking business-activity screen.

Business-activity disclosure

Capital One is a conventional financial-services company whose principal activities include credit cards, consumer lending, interest-bearing deposits, auto lending, commercial banking and the acquired Discover operations. Net interest income alone was 79.74% of current quarterly total revenue, far above the examined 5% activity benchmark.

Limitation: The filing separately reports interest, interchange, service charges, other non-interest income, credit losses and other financial categories but does not label each product or contract as Sharia-compliant or non-compliant. That limitation does not make the result uncertain because directly disclosed net interest income alone establishes the core business-activity failure.

Purification

Purification is not calculated because Capital One fails at the issuer's core business-activity level. The 79.74% net-interest figure is a documented minimum used to establish failure, not a percentage that can be donated to make continued ownership compliant. Investors should follow qualified guidance for disposing of income from an impermissible holding.

Inputs, assumptions and primary sources
  • Inputs use Capital One's March 31, 2026 Form 10-Q; amounts are USD millions as presented in the filing.
  • Interest-bearing funding includes $461,117 million of interest-bearing deposits, $11,283 million of secured debt, $626 million of federal funds purchased and securities sold under agreements to repurchase, $38,421 million of unsecured debt and $1,558 million of other borrowings.
  • Cash uses $4,555 million of cash and due from banks. Interest-bearing securities use $71,939 million of interest-bearing deposits in banks plus $90,620 million of available-for-sale debt securities and $1,694 million of held-to-maturity debt securities.
  • Receivables use $424,124 million of notes receivable net plus $3,460 million of interest receivable. Loans held for sale are not added to the broad receivables input.
  • Net interest income of $12,145 million is used as a directly comparable minimum non-compliant business-revenue numerator against $15,231 million of total revenues. Gross interest and dividend income is higher, but comparing gross income with revenue net of interest expense would mix accounting bases.
  • The minimum excludes additional conventional lending fees, interchange, service charges, trading and other financial activities; it is sufficient to establish failure without pretending to be a complete prohibited-revenue percentage.

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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