RY
Royal Bank of Canada
Is RY Halal?
Canadian bank — conventional interest-based banking.
What You Should Know
RBC's Q2 2026 statements report CAD 2,396,080 million of assets, funding/assets of 66.57%, liquidity/assets of 29.46%, receivables-plus-cash/assets of 48.89%, and net interest income of 48.74% of quarterly revenue. Core conventional banking remains impermissible.
⚠️ Concerns
- •Interest-based banking
- •Mortgage lending
- •Investment banking
- •Funding/assets is 66.57% and net interest income is 48.74% of Q2 revenue
Current quantitative Sharia screen
Based on Q2 2026 Report to Shareholders figures for the period ended 2026-04-30; calculated 2026-07-14.
1,595,044 / 2,396,080
705,857 / 2,396,080
1,171,442 / 2,396,080
8,506 / 17,453
- Financial
- Fails
- Overall
- Fails
Funding/assets is 66.57%, liquidity is 29.46%, receivables plus cash are 48.89% and net interest income is 48.74%; conventional banking independently fails the activity screen.
- Financial
- Fails
- Overall
- Fails
Funding/assets and net interest income exceed the examined limits; conventional banking also independently fails.
- Financial
- Fails
- Overall
- Fails
Funding, receivables plus cash and net 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
RBC is a conventional Canadian bank whose deposits, mortgages, consumer and commercial lending, treasury and investment-banking operations are core activities. The qualitative business screen therefore fails independently of ratio methodology.
Limitation: The report does not classify every fee, trading, advisory, insurance or subsidiary contract by Sharia status. That limitation does not change the result because conventional banking is the core business.
Purification
Purification is not calculated because RBC 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 CAD millions from RBC's Q2 2026 consolidated statement of financial position and Q2 statement of income.
- Interest-bearing funding proxy includes deposits of CAD 1,581,546 million plus subordinated debentures of CAD 13,498 million.
- Cash includes cash and due from banks of CAD 59,347 million plus interest-bearing deposits with banks of CAD 34,146 million; securities include trading and investment securities totaling CAD 612,364 million.
- Net loans of CAD 1,077,949 million are used as the conservative receivables/financing-assets numerator.
- Q2 total revenue was CAD 17,453 million and net interest income was CAD 8,506 million; the latter is treated as a conservative upper-bound indicator of conventional interest activity.
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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