JPM
JPMorgan Chase & Co.
Is JPM Halal?
Fails the business-activity screen: net interest income alone was 50.90% of current quarterly total net revenue.
What You Should Know
JPMorgan Chase is a conventional global bank whose core operations include interest-bearing deposits, consumer and commercial lending, credit cards, mortgages, investment banking, markets, securities services, and asset management. Its March 2026 filing reports $25.366 billion of net interest income against $49.836 billion of total net revenue. That directly comparable minimum exceeds the examined 5% activity limit without assigning unsupported percentages to its additional banking, fee, or trading revenue.
⚠️ Concerns
- •Interest-bearing deposits and lending are core operations
- •Net interest income was 50.90% of quarterly total net revenue
- •Investment banking, underwriting, principal transactions, derivatives, and securities financing require contract-level review
- •Interest-bearing funding was 67.28% of total assets
- •Consumer protection, fair lending, financing choices, privacy, and systemic-risk concerns require qualitative review
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-12.
3,296,841 / 4,900,475
1,900,549 / 4,900,475
2,409,193 / 4,900,475
25,366 / 49,836
- Financial
- Fails
- Overall
- Fails
Interest-bearing funding is 67.28% of assets, identified conventional liquidity is 38.78%, and net interest income is 50.90% of total net revenue. Receivables plus cash are 49.16%, below the separate 50% ratio, but the other ratios and conventional-banking activity fail.
- Financial
- Fails
- Overall
- Fails
Interest-bearing funding, identified conventional liquidity, and receivables plus cash are all above the applicable total-assets ratios. Conventional banking also independently fails the business-activity screen.
- Financial
- Fails
- Overall
- Fails
Interest-bearing funding and identified conventional liquidity exceed the 33% ratios, while net interest income alone is 50.90% of total net revenue. This is a calculation against the SAC ratios, not an official SAC classification of a U.S.-listed security.
- 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
JPMorgan Chase is a conventional global bank whose principal activities include taking interest-bearing deposits, making consumer and commercial loans, credit cards, mortgages, investment banking, markets and principal transactions, securities services, and asset and wealth management. Net interest income alone was 50.90% of current quarterly total net revenue, far above the examined 5% activity benchmark.
Limitation: The filing separately reports many fee and trading categories but does not label each transaction as Sharia-compliant or non-compliant. A comprehensive prohibited-revenue percentage would therefore require product- and contract-level classification. That limitation does not make the overall result uncertain because directly disclosed net interest income alone exceeds the activity limit by more than ten times.
Purification
Purification is not calculated because JPMorgan Chase fails at the issuer's core business-activity level. The 50.90% net-interest figure is a documented minimum used to establish the screen 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
- Interest-bearing funding includes 1,508,682 of domestic interest-bearing deposits, 527,639 of foreign interest-bearing deposits, 716,623 of federal funds purchased and securities loaned or sold under repurchase agreements, 68,048 of short-term borrowings, 448,764 of long-term debt, and 27,085 of beneficial interests issued by consolidated variable-interest entities.
- Cash and cash equivalents use the 22,039 reported as cash and due from banks.
- Identifiable interest-bearing assets include 290,103 of deposits with banks, 482,704 of federal funds sold and securities purchased under resale agreements, 284,524 of securities borrowed, and 821,179 of investment securities. Mixed trading assets are excluded rather than assumed to be entirely interest-bearing.
- Receivables conservatively include 1,477,592 of loans net of allowance, 142,334 of accrued interest and accounts receivable, 482,704 of federal funds sold and resale agreements, and 284,524 of securities borrowed.
- Net interest income of 25,366 is used as a directly comparable minimum non-compliant business-revenue numerator against 49,836 of total net revenue. Gross interest income was 49,191, but comparing a gross amount with revenue reported net of interest expense would mix accounting bases.
- The minimum excludes additional conventional lending and deposit fees, mortgage income, investment-banking fees, principal transactions, card income, and other financial activities, so 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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