Is Prosperity Bancshares (PB) stock halal?
Screened against AAOIFI Shari’ah Standard 21
No. Prosperity Bancshares (PB) does not pass the AAOIFI Shari’ah Standard 21 screen. Its main business is conventional banking, lending or insurance (SEC industry code 6022 (State Commercial Banks)), which AAOIFI Shari’ah Standard 21 excludes (3/4/1). Last checked 19 September 2026.
Prosperity Bancshares is not compliant under Halal / Islamic guidelines
AAOIFI Shari’ah Standard 21 Financial Audit
Figures from the latest annual report (the SEC filing or, for European companies, the ESEF annual report, where one exists, checked against Yahoo Finance) and a 36-month average market value.
| Test | Standard Limit | Actual Figure | Status |
|---|---|---|---|
| Main business | — | — | Fail |
| Interest-bearing debt | 30% | 23.51% | Pass |
| Cash and interest-bearing investments | 30% | 148.04% | Fail |
| Prohibited income | 5% | 130.73% | Fail |
| Not just cash and debts | 90% | 59.78% | Pass |
Key Findings & Observations
- Its main business is conventional banking, lending or insurance (SEC industry code 6022 (State Commercial Banks)), which AAOIFI Shari’ah Standard 21 excludes (3/4/1).Source: Business check
- Cash and interest-bearing investments are 148.0% of the company’s 36-month average market value. AAOIFI’s limit is under 30% (Shari'ah Standard 21, 3/4/3).Source: AAOIFI Shari'ah Standard 21
- Prohibited income, interest included, is 130.7% of total revenue. AAOIFI’s limit is 5% (Shari'ah Standard 21, 3/4/4).Source: AAOIFI Shari'ah Standard 21
- Bank’s core business of interest‑based lending constitutes riba, a prohibited activity in Islamic finance.Source: News Analyzer
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Frequently Asked Questions about Prosperity Bancshares, Inc. (PB)
Is Prosperity Bancshares (PB) stock halal?▾
No. Prosperity Bancshares (PB) does not pass the AAOIFI Shari’ah Standard 21 screen. Its main business is conventional banking, lending or insurance (SEC industry code 6022 (State Commercial Banks)), which AAOIFI Shari’ah Standard 21 excludes (3/4/1). Last checked 19 September 2026.
What is Prosperity Bancshares's debt ratio under Islamic finance standards?▾
Under AAOIFI Shari’ah Standard 21, interest-bearing debt must stay under 30% of a company's 36-month average market value. Prosperity Bancshares's ratio is about 23.5%.
How much dividend purification is required for Prosperity Bancshares (PB) stock?▾
Prosperity Bancshares does not pass the screen, so purification does not apply: the standard does not permit holding it.
Does Prosperity Bancshares operate in prohibited business activities?▾
AAOIFI Shari’ah Standard 21 excludes companies whose main business is prohibited, such as alcohol, pork, gambling, conventional interest-based finance and adult entertainment. Prosperity Bancshares's main business is checked against these. For companies that file with the US SEC, revenue by division is also read from the filing, so a division in a prohibited business is counted. Where the check cannot be settled, the result is shown as Needs Review rather than guessed.
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