Is Bank of Montreal BMO stock halal to invest in?

No. As of February 2026, Bank of Montreal (BMO) does not pass AAOIFI Shariah screening because non-permissible income, interest-bearing investments and interest-bearing debt exceed the permitted limits. AAOIFI Standard No. 21 caps non-permissible income at 5% of revenue, and interest-bearing debt and investments at 30% of market capitalisation each. We re-screen monthly, so the status can change. Check the live verdict in the Tabadulat app.

How often is Bank of Montreal BMO reviewed for Shariah compliance?

Tabadulat re-screens Bank of Montreal (BMO) every month. Each review applies AAOIFI Shariah Standard No. 21 to the latest financial data: business activity, non-permissible income, interest-bearing investments and debt, and preference shares. Our Shariah Supervisory Board oversees the process. Ratios move with the market, so a verdict can change. App users are alerted if a holding turns non-compliant.

Does Bank of Montreal BMO pass the AAOIFI Non Permissible Income criteria?

No. In the February 2026 screening, Bank of Montreal's income from non-permissible sources is above AAOIFI's 5% revenue ceiling, so this screen currently fails. The screen covers interest, conventional finance, alcohol, gambling and tobacco. We re-check it every month, and the result can change with new financial reports.

Does Bank of Montreal BMO pass the AAOIFI Interest Bearing Investments criteria?

No. In the February 2026 screening, Bank of Montreal's interest-bearing investments are above AAOIFI's 30% market-capitalisation limit, so this screen currently fails. The ratio moves with the share price as well as the balance sheet. We re-screen every month, and the result can change.

Does STOCK pass the AAOIFI Interest Bearing Debt criteria?

No. In the February 2026 screening, Bank of Montreal's interest-bearing debt is above AAOIFI's 30% market-capitalisation cap, so this screen currently fails. Market capitalisation changes daily, so the ratio can improve or worsen without new borrowing. We re-screen every month, and the status can change.

How can I check the latest Shariah compliance status of Bank of Montreal stock?

No purification factor applies to Bank of Montreal (BMO) right now. Factors are published only for stocks that pass AAOIFI screening, and BMO currently does not. Purification (Tazkiyah) means donating the small impure share of dividend income to charity. If BMO returns to compliance in a monthly review, its factor is published again.

Can the Shariah compliance status of Bank of Montreal stock change?

Yes. Bank of Montreal has no impermissible preference share structure, so it passes this AAOIFI screen as of February 2026. Preference shares promise holders fixed or priority dividends ahead of ordinary shareholders. That conflicts with the Shariah principle of sharing profit and loss in proportion to ownership. The screen is verified in every monthly review.

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Is Bank of Montreal (BMO) stock Halal?

NYSE

Shariah-Compliant

Not Shariah

Sector:

Financial Services

Industry:

Banks - Diversified

Employees:

53234

Website:

https://www.bmo.com

Market cap:

$120.5B

P/E ratio:

19.6

Dividend yield:

2.77%

52-week range:

$119.84 - $187.22

Data as of:

3 September 2026

Screening history:

Bank of Montreal is a leading Canadian multinational investment bank and financial services company, recognized as Canada’s oldest bank with a heritage dating back to 1817. The bank offers a comprehensive suite of financial products and services, including personal and commercial banking, wealth management, and investment banking solutions. Its clients span individuals, small businesses, large corporations, and institutional investors. For Muslim investors, though, the most pressing question is simpler: is Bank of Montreal a Halal investment?

Is Bank of Montreal Shariah compliant?

Finance is the sector where Shariah screening does the most work, because Riba is not incidental here, it can be the product itself. Bank of Montreal passes the business activity screen only if its revenue comes from permissible services rather than lending at interest, and the financial screens of AAOIFI Shariah Standard No. 21 still apply in full.

Does Bank of Montreal pass the business activity test?

The activity screen is only part of the picture this month: Bank of Montreal 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 Bank of Montreal's income Halal?

No. Bank of Montreal'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 Bank of Montreal 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 BMO 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

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