Is Credicorp (BAP) stock Halal?

Credicorp is a financial services holding company primarily operating in Peru, with its reach extending into other Latin American countries. The company's main purpose is to manage and control a diversified portfolio of financial institutions and corporations involved in banking, insurance, and wealth management activities. Credicorp's most notable subsidiary is Banco de Crédito del Perú, the largest commercial bank in Peru, which anchors the company's influence in the nation's banking sector. Before any of that matters to a Muslim investor, one question comes first: is Credicorp stock Halal?

Is Credicorp 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 Credicorp, that distinction comes first, with the debt and investment ratios behind it.

Does Credicorp pass the business activity test?

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

No. Credicorp'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 Credicorp 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 BAP 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