Lloyds Banking Group plc

LYG: Is Lloyds Banking Group plc Halal?

Lloyds Banking Group plc

NYSEFinancial ServicesGB

$6.28

+1.45%

Market Cap: 91.1B

Compliance Status

Not Halal

Screened on Sep 2, 2026 · AAOIFI Standard 21

F

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 Sep 2, 2026. Source: https://halalscreener.app/en/stock/LYG

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%.

145.6% of 30.0% limit

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

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

Shariah Compliance Status

AAOIFI Standard 21Updated Sep 2, 2026

Business Activity Screen

Failed

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

  • Prohibited industry: Banks - Regional

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: FY 2025Data 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:

SPDR Gold Shares
GLDA+

SPDR Gold Shares

$396.75

+0.17%

iShares Silver Trust
SLVA+

iShares Silver Trust

$57.92

+0.47%

Sprott Physical Silver Trust
PSLVA+

Sprott Physical Silver Trust

$21.30

+6.23%

Sprott Physical Gold Trust
PHYSA+

Sprott Physical Gold Trust

$31.75

+0.19%

Sprott Physical Gold and Silver Trust
CEFA+

Sprott Physical Gold and Silver Trust

$43.28

+4.44%

More Financial Services Stocks

JPM

JPMorgan Chase & Co.

F

V

Visa Inc.

A+

MA

Mastercard Incorporated

A+

PYPL

PayPal Holdings, Inc.

C+

BAC

Bank of America Corporation

F

WFC

Wells Fargo & Company

F
Free · No credit card required

Track LYG and 6,200+ stocks with AI insights

Create your free account to unlock AI-powered compliance analysis, track your portfolio, calculate purification, and get unlimited AAOIFI screening.

Get Started FreeBrowse Screener
6,200+ assets AAOIFI standards Free watchlist

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 145.6% (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: Sep 2, 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.