HSBC
HSBC Holdings PLC
Is HSBC Halal?
Global bank — conventional banking despite Islamic windows.
What You Should Know
HSBC's 1Q 2026 statements report USD 3,306,011 million of assets, funding/assets of 59.62%, liquidity/assets of 39.31%, receivables-plus-cash/assets of 36.80%, and reported net interest income of 48.03% of quarterly revenue. Islamic windows do not change the majority conventional banking conclusion.
⚠️ Concerns
- •Conventional banking majority
- •Interest income dominates
- •Despite Islamic windows, core is riba
- •Reported net interest income is 48.03% of Q1 revenue
Current quantitative Sharia screen
Based on 1Q 2026 Earnings Release figures for the period ended 2026-03-31; calculated 2026-07-14.
1,971,084 / 3,306,011
1,299,541 / 3,306,011
1,216,664 / 3,306,011
8,945 / 18,624
- Financial
- Fails
- Overall
- Fails
Funding/assets is 59.62%, liquidity is 39.31%, receivables plus cash are 36.80% and reported net interest income is 48.03%; conventional banking independently fails the activity screen.
- Financial
- Fails
- Overall
- Fails
Funding/assets, liquidity and reported interest income exceed the examined limits; conventional banking also independently fails.
- Financial
- Fails
- Overall
- Fails
Funding, liquidity and reported interest income exceed the examined limits; this is a calculation against SAC ratios, not an official SAC classification.
- 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
HSBC is a global conventional bank. Its customer deposits, lending, treasury, markets and investment-banking businesses dominate the group despite Islamic windows and products; the qualitative business screen therefore fails independently of ratio methodology.
Limitation: The group report does not classify every fee, trading, insurance, wealth or subsidiary contract by Sharia status. That limitation does not change the result because conventional banking is the core group activity.
Purification
Purification is not calculated because HSBC 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 USD millions from HSBC's 1Q 2026 consolidated balance sheet and earnings release.
- Interest-bearing funding proxy includes customer accounts of USD 1,781,761 million, deposits by banks of USD 87,581 million and debt securities in issue of USD 101,742 million.
- Cash and balances at central banks are USD 214,707 million; identifiable interest-bearing securities include trading assets, FVTPL assets and financial investments totaling USD 1,084,834 million; derivatives are excluded.
- Loans and advances to customers at amortised cost of USD 1,001,957 million are used as the conservative receivables/financing-assets numerator.
- Reported Q1 revenue was USD 18,624 million and reported net interest income was USD 8,945 million; the latter is treated as a conservative upper-bound indicator of conventional interest activity. HSBC separately reports banking NII of USD 11,253 million after funding-cost adjustments.
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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