MS

Morgan Stanley

HARAM — SCREEN DOES NOT PASSstock

Is MS Halal?

Conventional investment bank — net interest income is 13.14% of Q1 net revenue and core financing is conventional.

What You Should Know

Morgan Stanley's March 31, 2026 Form 10-Q shows $1,581,418 million of assets and $2,703 million of net interest income against $20,580 million of quarterly net revenue. Investment banking, bonds, derivatives, margin lending, securities financing and conventional wealth products fail the examined activity screen.

⚠️ Concerns

  • Investment banking and bond underwriting
  • Derivatives, margin lending and structured products
  • Conventional wealth-management portfolios

Current quantitative Sharia screen

Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-14.

USD · millions
Interest-bearing debt / assets
23.50%Within limit
Below 33.333% under FTSE Yasaar

371,568 / 1,581,418

Cash + interest-bearing securities / assets
34.76%Above limit
Below 33.333% under FTSE Yasaar

549,647 / 1,581,418

Receivables + cash / assets
42.42%Within limit
Below 50% under FTSE Yasaar

670,817 / 1,581,418

Non-compliant income / revenue
13.13%Above limit
No more than 5% under FTSE Yasaar

2,703 / 20,580

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

Debt is 23.50% of assets, identifiable liquidity is 26.31% and net interest income is 13.14% of revenue; conventional financial activity independently fails.

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

Receivables-plus-cash and identifiable liquidity exceed the examined total-assets limits, and conventional financial activity independently fails.

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

Net interest income is 13.14% of revenue and conventional financial services are the core business. 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; another denominator cannot cure the failed conventional-finance activity.

Business-activity disclosure

Morgan Stanley is a conventional investment bank and wealth manager focused on securities underwriting, trading, derivatives, financing, lending and asset management. Net interest income alone was 13.14% of quarterly net revenue, above the examined 5% activity benchmark.

Limitation: The filing does not classify every trading, advisory, financing or wealth-management contract by Sharia status. The conventional financial-services core independently fails.

Purification

Purification is not calculated because Morgan Stanley fails at the core conventional-finance activity level. The 13.14% net-interest figure establishes failure rather than a donation percentage.

Inputs, assumptions and primary sources
  • Amounts are USD millions from Morgan Stanley's March 31, 2026 Form 10-Q.
  • Debt uses reported borrowings and secured financing liabilities; trading liabilities are excluded rather than assumed entirely interest-bearing.
  • Identifiable interest-bearing securities include interest-bearing bank deposits, resale agreements and available-for-sale and held-to-maturity debt securities.
  • Receivables include customer and other receivables, financing receivables and resale agreements.
  • Net interest income of $2,703 million is compared with $20,580 million of quarterly net revenue as a directly disclosed minimum non-compliant business-revenue numerator.

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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