What is Lloyds Banking Group plc's Shariah compliance score?

Lloyds Banking Group plc (LYG) has a Shariah compliance score of 0/100 (Grade: F, Non-Compliant). AAOIFI Standard No. 21 requires: (1) no primary involvement in prohibited activities like alcohol, gambling, or conventional banking, (2) debt-to-market-cap below 30%, (3) interest-bearing deposits below 30%, and (4) prohibited income below 5%.

Does Lloyds Banking Group plc pass AAOIFI screening?

Lloyds Banking Group plc (LYG) does not pass AAOIFI Shariah screening. AAOIFI Standard No. 21 requires: (1) no primary involvement in prohibited activities like alcohol, gambling, or conventional banking, (2) debt-to-market-cap below 30%, (3) interest-bearing deposits below 30%, and (4) prohibited income below 5%. LYG's debt-to-market-cap is 169.1%.

How much purification is needed for Lloyds Banking Group plc?

Muslim investors purify the portion of dividends and realized gains that comes from non-permissible income by donating it to charity. HalalScreener's purification calculator at halalscreener.app/en/purification computes the percentage and amount for Lloyds Banking Group plc (LYG) using the latest financial data.

Where can I screen Lloyds Banking Group plc for Shariah compliance for free?

HalalScreener (halalscreener.app) offers free Shariah compliance screening for Lloyds Banking Group plc (LYG) and 8,200+ securities. US-listed stocks and ETFs are screened under AAOIFI Standard No. 21. Bursa Malaysia securities carry the Securities Commission Malaysia's official status. Coins are screened separately, under published scholarly opinion. The verdict is free, with no credit card or signup required for basic screening. The compliance grade, score, and debt ratio are free too; the full ratio breakdown is part of Pro.

LYGNot HalalF

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Compliance Status

Not Halal

Screened on Oct 18, 2026 · AAOIFI Standard 21

Non-Compliant

0Score

Is Lloyds Banking Group plc (LYG) halal? Not Halal. Based on AAOIFI screening, Lloyds Banking Group plc has involvement in prohibited business activities with a compliance score of 0/100 (Grade: F).

Quote this verdict

HalalScreener rates Lloyds Banking Group plc (LYG) Not Halal, 0/100, grade F under AAOIFI Standard 21, screened Oct 18, 2026. Source: https://halalscreener.app/en/stock/LYG

AvoidBorderlineClean

Business activity

Involved in prohibited business activities.

Failed

Company debt

Over the limit

How much the company borrows, compared to its total value. AAOIFI allows up to 30%.

169.1% of 30.0% limit

PRO DETAIL

The verdict above is final and free.

Pro members can verify every number behind it: interest-bearing deposits, prohibited income breakdown, and the full AAOIFI math.

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Screened according to AAOIFI Standard 21

What this means for you

Most scholars advise not holding LYG

It does not pass AAOIFI Shariah screening.

See halal alternatives from the same sector further down this page

LYG: Is Lloyds Banking Group plc Halal?

Lloyds Banking Group plc

NYSEFinancial ServicesGB

$5.48

Market Cap: 80.5B

Screened on a market cap of 60.5B

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About Lloyds Banking Group plc

Operating primarily within the United Kingdom, Lloyds Banking Group plc and its various subsidiaries deliver an extensive array of banking and financial products and services. The group's operations are divided into three core segments: Retail, Commercial Banking, and Insurance & Wealth. The Retail division serves individual consumers and small businesses with essential financial tools like checking and savings accounts, mortgages, auto financing, unsecured personal loans, leasing arrangements, and credit cards. Through its Commercial Banking arm, the group provides lending, transactional banking, working capital solutions, risk management advice, and debt financing services, catering to small and medium-sized enterprises, large corporations, and financial institutions. The Insurance & Wealth segment focuses on offering diverse insurance products, investment opportunities, and comprehensive wealth management services. Additionally, the company provides modern digital banking solutions. Its offerings are accessible through prominent brands including Lloyds Bank, Halifax, Bank of Scotland, and Scottish Widows. Established in 1695, Lloyds Banking Group plc is headquartered in London, United Kingdom.

Sector: Financial Services · Industry: Banks - Regional

Why this does not pass

Business activity: the company earns from an activity AAOIFI treats as prohibited.
Interest-bearing debt is 169.1% of market cap, over the 30% AAOIFI limit.
Interest-bearing deposits are over the 30% limit.
Income from prohibited sources is over the 5% limit.

Screened under AAOIFI Standard 21. The exact figure behind this is part of Pro; the failing check and its limit are always free.

Shariah Compliance Status

AAOIFI Standard 21Updated Oct 18, 2026

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Business Activity Screen

Failed

Checks if the business is involved in prohibited activities (alcohol, gambling, pork, conventional banking, etc.)

Prohibited industry: Banks - Regional

PRO DETAIL

The verdict above is final and free.

Pro members can verify every number behind it: interest-bearing deposits, prohibited income breakdown, and the full AAOIFI math.

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Screened according to AAOIFI Standard 21

Compliance History

Not Halal, unchanged since May 2026.

No status changes recorded since we began tracking.

Tracked since May 2026. Updates automatically on each re-screen.

Fiscal: Q2 2026Data source: FMP

Halal Alternatives in Financial Services

This stock is not Shariah-compliant. Here are halal alternatives from the same sector, ranked by compliance score:

GLDA+

SPDR Gold Shares

$382.01

SLVA+

iShares Silver Trust

$51.51

PSLVA+

Sprott Physical Silver Trust

$18.48

PHYSA+

Sprott Physical Gold Trust

$31.50

CEFA+

Sprott Physical Gold and Silver Trust

$40.45

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Frequently Asked Questions

Is Lloyds Banking Group plc (LYG) halal to invest in?

Lloyds Banking Group plc (LYG) is rated Not Halal under AAOIFI Standard 21 screening. It fails either the business activity screen (primary involvement in prohibited sectors such as conventional banking, alcohol, or gambling) or one of the quantitative financial ratio thresholds. Muslim investors should avoid or exit this position.

Why did Lloyds Banking Group plc get a F compliance rating?

Lloyds Banking Group plc (LYG) received a grade of F (Non-Compliant) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 169.1% (limit 30%). The grade reflects the margin of safety across all three ratios relative to their thresholds.

What could change Lloyds Banking Group plc's Shariah verdict?

Lloyds Banking Group plc's verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.

How often is Lloyds Banking Group plc re-screened for Shariah compliance?

Lloyds Banking Group plc (LYG) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Oct 18, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.