Is Bank of America Corp. BAC stock halal to invest in?

No, as of August 2026, Bank of America Corp. stock (BAC) is not currently classified as a Shariah compliant stock. This verdict follows the screening methodology of AAOIFI (the Accounting and Auditing Organization for Islamic Financial Institutions), whose Shariah Standard No. 21 is the leading global benchmark for screening halal stocks. To qualify as halal under this standard, a company must keep non-permissible income below 5% of total revenue, keep both interest-bearing investments and interest-bearing debt below 30% of market capitalisation, and have no impermissible preference share structure. Bank of America Corp. currently does not meet the threshold for the non-permissible income and interest-bearing debt screens. Because screenings are refreshed monthly as new financial reports are published, a non-compliant stock can regain compliant status if its financial structure changes. You can track the latest status of Bank of America Corp. and discover Shariah compliant alternatives among the halal stocks in the Tabadulat app.

How often is Bank of America Corp. BAC reviewed for Shariah compliance?

Tabadulat reviews Bank of America Corp. BAC for Shariah compliance every month. Each review applies the AAOIFI Shariah Standard No. 21 methodology, screening the company's business activities, non-permissible income, interest-bearing investments, interest-bearing debt, and preference shares, against the company's latest available financial data. The process operates under the direct supervision of Tabadulat's dedicated Shariah Supervisory Board of Islamic finance scholars. Because compliance depends on financial ratios that move with market capitalisation and reported results, a stock's status can change from one review to the next. Monthly screening ensures the status shown for Bank of America Corp. reflects current financial data rather than an outdated assessment, and Tabadulat app users are notified if a holding in their portfolio becomes non-compliant.

Does Bank of America Corp. BAC pass the AAOIFI Non Permissible Income criteria?

No, as of August 2026, Bank of America Corp. stock (BAC) does not pass the AAOIFI non-permissible income screen. Under AAOIFI Shariah Standard No. 21, income from impermissible sources (such as interest or riba, conventional financial services, alcohol, gambling, or tobacco) must remain below 5% of a company's total revenue. Bank of America Corp.'s income from non-permissible sources currently exceeds this 5% ceiling, which makes the stock non-compliant on this criterion regardless of how it performs on the other screens. The screen is reassessed monthly, so the status can change when the company releases new financial statements.

Does Bank of America Corp. BAC pass the AAOIFI Interest Bearing Investments criteria?

Yes, as of August 2026, Bank of America Corp. stock (BAC) passes the AAOIFI interest-bearing investments screen. Under AAOIFI Shariah Standard No. 21, the cash a company places in interest-earning instruments (such as conventional deposits, bonds, treasury bills and money-market funds) must remain below 30% of its market capitalisation. This limit ensures shareholders are not materially profiting from riba (interest). Bank of America Corp.'s interest-bearing investments are currently within the 30% threshold. Because the ratio is measured against market capitalisation, it can move with the share price as well as the balance sheet, which is why Tabadulat rescreens the stock every month.

Does Bank of America Corp. BAC pass the AAOIFI Interest Bearing Debt criteria?

No, as of August 2026, Bank of America Corp. stock (BAC) does not pass the AAOIFI interest-bearing debt screen. Under AAOIFI Shariah Standard No. 21, a company's borrowings that accrue interest (conventional bank loans, bonds and similar riba-based financing) must remain below 30% of its market capitalisation. Bank of America Corp.'s interest-bearing debt currently exceeds this 30% limit, meaning the company relies on riba-based financing beyond the level AAOIFI permits for a halal investment. A company can return to compliance by reducing debt or through changes in market capitalisation, and the screen is reassessed monthly.

What is the dividend purification factor for Bank of America Corp. BAC stock?

Bank of America Corp. (BAC) is currently classified as not Shariah compliant, so no dividend purification factor applies, because purification factors are calculated only for stocks that pass the AAOIFI screens. Purification (tazkiyah) is the practice of donating to charity the small portion of dividend income that stems from incidental non-permissible sources, such as interest earned on a compliant company's cash deposits. For non-compliant stocks the issue is not purification but eligibility: under AAOIFI Shariah Standard No. 21 the stock does not currently qualify as a halal investment. If Bank of America Corp. returns to compliance in a future monthly screening, its purification factor will be published alongside its updated status in the Tabadulat app.

Does Bank of America Corp. BAC pass the AAOIFI Preference Share screen?

Yes, as of August 2026, Bank of America Corp. stock (BAC) passes the AAOIFI preference share screen. AAOIFI Shariah Standard No. 21 prohibits investing in preference shares because they grant holders guaranteed or priority rights to dividends and capital ahead of ordinary shareholders, a structure that conflicts with the Shariah principle that investors should share profit and loss in proportion to their ownership. Bank of America Corp. has no impermissible preference share structure affecting its ordinary shares, so the stock is compliant on this criterion. Like all AAOIFI screens, this is verified in each monthly review.

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Bank of America Corp.

NYSE

Shariah-Compliant

Not Shariah

BAC

About

Bank of America Corp.

BAC

Bank of America Corporation is a leading financial services company, offering a comprehensive range of banking, investment, and risk management services to individual, corporate, and institutional clients globally. As one of the largest banks in the United States, it provides essential financial products such as checking and savings accounts, credit cards, loans, wealth management, and mortgage services. Bank of America's operations are organized into various sectors, including consumer banking, global wealth and investment management, global banking, and global markets, reflecting its diverse business model and expansive client reach. The corporation is a pivotal player in global finance, influencing capital flow and investment strategies through its widespread network of branches and ATMs. Its role extends beyond traditional banking as it actively engages in community development and sustainability initiatives. Headquartered in Charlotte, North Carolina, Bank of America is well-integrated into the global financial system, with presence across several continents supporting economic growth and financial inclusion. With a strategic focus on technology and digital transformation, the bank enhances customer experiences and operational efficiency while staying ahead in an increasingly competitive financial landscape.

Sector:

Financial Services

Industry:

Banks - Diversified

Employees:

213207

Website:

https://www.bankofamerica.com

BAC

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Bank of America Corp.

About

Bank of America Corp.

BAC

Frequently asked questions

Is Bank of America Corp. BAC stock halal to invest in?

How often is Bank of America Corp. BAC reviewed for Shariah compliance?

Does Bank of America Corp. BAC pass the AAOIFI Non Permissible Income criteria?

Does Bank of America Corp. BAC pass the AAOIFI Interest Bearing Investments criteria?

Does Bank of America Corp. BAC pass the AAOIFI Interest Bearing Debt criteria?

What is the dividend purification factor for Bank of America Corp. BAC stock?

Does Bank of America Corp. BAC pass the AAOIFI Preference Share screen?

Can I buy Bank of America (BAC) stock on Tabadulat?

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