STT

State Street Corporation

HARAM — SCREEN DOES NOT PASSstock

Is STT Halal?

Conventional bank and asset manager with structural interest, lending and securities-finance activities.

What You Should Know

State Street's March 31, 2026 Form 10-Q reports approximately $392,170 million of assets, $30,183 million of debt and short-term borrowing proxies, $6,518 million of cash and $108,377 million of investment securities. Quarterly revenue was $3,796 million, including $2,651 million of interest income and $835 million of net interest income. The chartered-bank model, securities lending and conventional fixed-income portfolio fail the mainstream business-activity screen; bank ratios are shown only as contextual proxies, not as an industrial-company certification.

⚠️ Concerns

  • Core business is conventional banking with net interest income
  • Securities lending, repo and short-term financing are riba-based
  • Investment securities total approximately $108.4 billion
  • Bank balance-sheet ratios do not map cleanly to industrial-company tests

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
7.70%Within limit
Below 33.333% under FTSE Yasaar

30,183 / 392,170

Cash + interest-bearing securities / assets
29.30%Within limit
Below 33.333% under FTSE Yasaar

114,895 / 392,170

Receivables + cash / assets
1.66%Within limit
Below 50% under FTSE Yasaar

6,518 / 392,170

Non-compliant income / revenue (upper bound)
69.84%Above limit
No more than 5% under FTSE Yasaar

2,651 / 3,796

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

The conservative interest-income proxy is 69.85% of revenue, above the examined income limit; the conventional-bank business screen independently fails. Bank ratio proxies should not be read as an industrial-company certification.

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

Debt and liquidity proxies are below the examined total-assets limits, but a conventional bank independently fails the business-activity screen; this is not an index-membership claim.

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

The proxy ratios are below the examined SAC limits, but those industrial-company tests are not designed to turn a conventional bank into a compliant issuer; the business screen fails.

Market-cap denominator methods
MSCI M-Series, S&P and Dow Jones methods differ
Financial
Not calculated
Overall
Fails

A licensed reproducible historical market-cap series is not stored, and a different denominator cannot cure the direct conventional-bank failure.

Business-activity disclosure

State Street is a conventional bank holding company operating custody, deposits, securities finance, lending, trading and investment-management businesses. Net interest income, interest-bearing deposits and securities finance are structural parts of the business and are classified as riba-based under the mainstream screening position.

Limitation: Bank balance sheets do not map cleanly onto industrial-company ratios, but the chartered banking model and disclosed interest income are sufficiently clear for a business-screen failure.

Purification

Purification is not calculated because the issuer fails the conventional-bank business screen. Total interest income is shown as a conservative screening input, not as a percentage that makes a bank permissible.

Inputs, assumptions and primary sources
  • Amounts are USD millions from State Street's March 31, 2026 Form 10-Q.
  • Total assets are reported as approximately 392.17 billion; cash and due from banks are 6,518.
  • Interest-bearing debt proxy includes long-term debt of 25,233, other short-term borrowings of 3,981 and repurchase agreements of 969; bank deposits are not treated as corporate debt.
  • Interest-bearing securities are available-for-sale securities of 71,645 plus held-to-maturity securities of 36,732. Quarterly revenue is 3,796 and total interest income is 2,651.
  • Receivables are not a comparable industrial-company line for a bank, so the input is zero and the proxy limitation is disclosed.
  • The conventional bank and securities-finance business is treated as a direct business-screen failure; the income proxy is conservative and not a purification prescription.

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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