Is Banco Bilbao Vizcaya Argentaria (BBVA) stock Halal?

Banco Bilbao Vizcaya Argentaria, S.A. is a prominent multinational banking group headquartered in Bilbao, Spain. This financial institution plays a critical role in the banking sector, offering a broad range of financial services such as retail banking, investment management, and commercial banking solutions. The bank is notably influential across Europe, with significant operations in Spain and a strong presence in Latin America, particularly in Mexico and South America. This geographic diversification enhances its market resilience and operational strength. Before any of that matters to a Muslim investor, one question comes first: is Banco Bilbao Vizcaya Argentaria stock Halal?

Is Banco Bilbao Vizcaya Argentaria Shariah compliant?

In financial services the activity screen carries the verdict more often than anywhere else: AAOIFI Shariah Standard No. 21 draws a hard line between fee based, permissible services and earning Riba as a business model. For Banco Bilbao Vizcaya Argentaria, that distinction comes first, with the debt and investment ratios behind it.

Does Banco Bilbao Vizcaya Argentaria pass the business activity test?

The activity screen is only part of the picture this month: Banco Bilbao Vizcaya Argentaria currently fails the non-permissible income, interest-bearing investments and interest-bearing debt screens, so the overall verdict is not compliant regardless of the business itself. The watch item in this sector is the sharpest of all: revenue must come from permissible services, not from lending at interest.

Is Banco Bilbao Vizcaya Argentaria's income Halal?

No. Banco Bilbao Vizcaya Argentaria's income from impermissible sources currently exceeds AAOIFI's 5% revenue ceiling, which makes the stock non-compliant on this screen regardless of the others. The screen is reassessed monthly, so the status can change when new financial statements arrive.

Does Banco Bilbao Vizcaya Argentaria meet AAOIFI's debt and investment ratio requirements?

No. Both ratios currently breach the 30% caps: interest bearing investments and interest bearing debt each exceed the limit AAOIFI permits for a Halal investment. The ratios move with the share price as well as the balance sheet, and our Shariah Supervisory Board has BBVA re-screened every month.

Tabadulat is an ADGM regulated brokerage whose license covers Shari'a Compliant Regulated Activities, as the FSRA permission names them. New to the terminology? Gharar and Maysir, Sukuk, Zakat and purification are all explained in plain English.

New to the four screens? Read What is Riba? A Clear Guide for Ethical Muslim Investing