SCHW
Charles Schwab Corp.
Is SCHW Halal?
Fails the business-activity screen: brokerage, margin lending, and banking are core operations; net interest revenue was $3,144 million in Q1 2026.
What You Should Know
Charles Schwab's March 31, 2026 Form 10-Q reports $493,319 million of assets, $32,972 million of interest-bearing debt, $44,975 million of cash, $196,623 million of AFS and HTM debt securities, $178,891 million of identified brokerage and financing receivables, and $6,482 million of quarterly revenue. Net interest revenue was $3,144 million. The conventional financial ratios are calculated explicitly, but the large securities, margin-loan, deposit, and banking operations preserve the existing HARAM verdict.
⚠️ Concerns
- •Margin lending and bank lending involve riba
- •AFS and HTM debt securities were $196,623 million
- •Net interest revenue was $3,144 million, or 48.50% of quarterly revenue
- •Brokerage client cash, deposits, securities lending, and derivatives require continuing Sharia review
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-14.
32,972 / 493,319
241,598 / 493,319
223,866 / 493,319
3,144 / 6,482
- Financial
- Fails
- Overall
- Fails
Debt/assets is 6.68%, liquidity/assets is 48.97%, and receivables plus cash/assets is 45.38%; net interest revenue is 48.50% of revenue and the core banking business fails.
- Financial
- Fails
- Overall
- Fails
Liquidity/assets and receivables plus cash/assets exceed the examined total-assets limits; the core banking and margin business fails independently.
- Financial
- Fails
- Overall
- Fails
Debt/assets is below 33%, but liquidity/assets is 48.97%, above the examined 33% limit; the direct brokerage, margin, and banking business also fails. This is not an official SAC classification.
- Financial
- Not calculated
- Overall
- Fails
Market-cap methods are not calculated; the direct financial-services business independently prevents a pass.
Business-activity disclosure
Charles Schwab operates securities brokerage, margin lending, banking, custody, asset management, securities lending, and related financial services. Interest-bearing lending and deposits are central to the platform.
Limitation: The filing provides direct evidence of the core lending and banking activity; no permissible carve-out is assumed from the brokerage or advisory segments.
Purification
Net interest revenue of $3,144 million is disclosed, but purification cannot cure a direct core-business failure.
Inputs, assumptions and primary sources
- Amounts are USD millions from Schwab's March 31, 2026 Form 10-Q and rounded to the nearest million.
- Interest-bearing debt includes other short-term borrowings of $12,486 million and long-term debt of $20,486 million; client payables are not counted as corporate debt.
- Cash is $44,975 million; AFS and HTM debt securities total $196,623 million using $64,952 million of AFS and $131,671 million of HTM securities.
- Receivables conservatively include $11,808 million from brokers and clearing organizations, $106,211 million from brokerage clients, and $60,872 million of financing receivables.
- Quarterly revenue is $6,482 million and net interest revenue is $3,144 million; the full revenue total is used as a conservative prohibited-revenue proxy because banking and brokerage are core activities.
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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