Is Canadian Imperial Bank of Commerce (CM) stock Halal?

Canadian Imperial Bank of Commerce is a major financial institution in Canada offering a wide array of banking and financial services. As one of the country's 'Big Five' banks, its primary purpose is to provide comprehensive personal, business, and investment banking solutions to its clientele. CIBC serves various sectors, including consumer retail, real estate, telecommunications, and energy, significantly impacting these industries through its financing and advisory roles. For Muslim investors, though, the most pressing question is simpler: is Canadian Imperial Bank of Commerce a Halal investment?

Is Canadian Imperial Bank of Commerce 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. Canadian Imperial Bank of Commerce 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 Canadian Imperial Bank of Commerce pass the business activity test?

The activity screen is only part of the picture this month: Canadian Imperial Bank of Commerce currently fails the non-permissible income 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 Canadian Imperial Bank of Commerce's income Halal?

No. Canadian Imperial Bank of Commerce'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 Canadian Imperial Bank of Commerce meet AAOIFI's debt and investment ratio requirements?

Not in full. Interest bearing debt currently exceeds the 30% cap, while the other ratio stays within it. One breach is enough to fail the screening; the ratios are reassessed monthly under our Shariah Supervisory Board.

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