LLOY

Lloyds Banking Group PLC

HARAM — SCREEN DOES NOT PASSstock

Is LLOY Halal?

UK bank — conventional banking.

What You Should Know

Lloyds is a UK retail and commercial bank. Its Q1 2026 filing reports net interest income at 67.19% of total income, while debt is 66.64% and receivables plus cash are 56.00% of assets; mortgages and lending are core conventional operations.

⚠️ Concerns

  • Mortgage and consumer lending
  • 66.64% interest-bearing funding
  • 67.19% reported net-interest ratio

Current quantitative Sharia screen

Based on Q1 2026 Interim Management Statement figures for the period ended 2026-03-31; calculated 2026-07-14.

GBP · millions
Interest-bearing debt / assets
66.64%Above limit
Below 33.333% under FTSE Yasaar

645,166 / 968,125

Cash + interest-bearing securities / assets
34.73%Above limit
Below 33.333% under FTSE Yasaar

336,196 / 968,125

Receivables + cash / assets
56.64%Above limit
Below 50% under FTSE Yasaar

548,328 / 968,125

Non-compliant income / revenue (upper bound)
67.19%Above limit
No more than 5% under FTSE Yasaar

3,483 / 5,184

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

Debt is 66.64% of assets, liquidity is 34.73%, receivables plus cash are 56.00%, and net interest income is 67.19%; the examined limits are exceeded.

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

Debt, liquidity and receivables-plus-cash exceed the examined MSCI total-assets limits.

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

Debt and liquidity exceed the examined SAC ratios; 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 activity.

Business-activity disclosure

Lloyds is a UK retail and commercial bank whose mortgages, consumer lending and deposit-taking are conventional interest-based operations. Net interest income was 67.19% of Q1 total income.

Limitation: The interim statement does not classify every fee, card, insurance, trading or subsidiary contract by Sharia status; conventional lending and disclosed net interest independently establish the activity concern.

Purification

Purification is not calculated because the core conventional-banking activity fails; the 67.19% net-interest ratio is evidence of failure, not a donation amount that makes ownership compliant.

Inputs, assumptions and primary sources
  • GBP millions from Lloyds Banking Group's statutory 31 March 2026 summary balance sheet and income statement.
  • Interest-bearing funding includes bank and customer deposits, repurchase agreements, debt securities in issue and subordinated liabilities.
  • Identifiable securities include FVTPL and FVOCI financial assets; derivatives and the broad amortised-cost line are excluded. Underlying customer loans of GBP 486.2 billion are the receivables/financing-assets proxy.
  • Statutory net interest income of GBP 3,483 million is used as the conservative non-compliant-income numerator against GBP 5,184 million total income.

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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