Lloyds Banking Group Plc (LYG) - Not Halal (Non-Compliant)
Lloyds Banking Group Plc (LYG) is classified as Not Halal (Non-Compliant) according to AAOIFI Shariah screening standards. This assessment is based on business activity screening and financial ratio analysis using the AAOIFI methodology.
Business Activity Screen
- Sector
- Financial Services
- Industry
- Banks - Regional
- Result
- Pass
- Reason
- The sector "Financial Services" and industry "Banks - Regional" are not in the excluded categories.
Financial Ratios
- Debt Ratio
- Value: 186.7% | Threshold: 30% | Result: Fail
- Cash & Interest-bearing Securities Ratio
- Value: 207.8% | Threshold: 30% | Result: Fail
- Non-Permissible Income Ratio
- Value: 92.5% | Threshold: 5% | Result: Fail
Dividend Purification
Purification percentage: 92.46%.Based on the company's financial statements, approximately 92.46% of dividend income should be donated to charity for purification. This is derived from identified interest income (92.46% of total income). Some scholars may differ on the exact calculation method.
About Lloyds Banking Group Plc
Lloyds Banking Group plc, together with its subsidiaries, provides a range of banking and financial products and services for retail and commercial customers in the United Kingdom. It operates in three segments: Retail; Commercial Banking; and Insurance, Pensions and Investments. The Retail segment offers a range of financial service products, including current accounts, savings, mortgages, credit cards, unsecured loans, motor finance, and leasing solutions to personal customers. Its Commercial Banking segment provides lending, transactional banking, working capital management, debt financing, and risk management services to small and medium businesses, corporates, and institutions. The Insurance, Pensions and Investments segment offers insurance, investment, and pension management products and services. It also provides life assurance; and digital banking services. The company offers its products and services under the Lloyds Bank, Halifax, Bank of Scotland, Scottish Widows, MBNA, Schroders Personal Wealth, Black Horse, Lex Autolease, Birmingham Midshires, LDC, AMC, Embark Group, Lloyds Living, Cavendish Online, Tusker, and HGP brands. The company was formerly known as Lloyds TSB Group plc and changed its name to Lloyds Banking Group plc in January 2009. Lloyds Banking Group plc was founded in 1695 and is headquartered in London, the United Kingdom.