Is Provident Financial Services (PFS) stock halal?
Screened against AAOIFI Shari’ah Standard 21
No. Provident Financial Services (PFS) does not pass the AAOIFI Shari’ah Standard 21 screen. Its main business is conventional banking, lending or insurance (SEC industry code 6035 (Savings Institution, Federally Chartered)), which AAOIFI Shari’ah Standard 21 excludes (3/4/1). Last checked 19 September 2026.
Provident Financial Services 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% | 99.15% | Fail |
| Cash and interest-bearing investments | 30% | 155.13% | Review |
| Prohibited income | 5% | — | Review |
| Not just cash and debts | 90% | 15.56% | Pass |
Key Findings & Observations
- Its main business is conventional banking, lending or insurance (SEC industry code 6035 (Savings Institution, Federally Chartered)), which AAOIFI Shari’ah Standard 21 excludes (3/4/1).Source: Business check
- Its annual report has a product line called ‘Insurance Commissions And Fees’ (25.0% of revenue). We couldn’t tell from the name whether it is conventional banking, lending or insurance.Source: https://www.sec.gov/Archives/edgar/data/1178970/000162828026012814/
- Interest-bearing debt is 99.2% of the company’s 36-month average market value. AAOIFI’s limit is under 30% (Shari'ah Standard 21, 3/4/2).Source: AAOIFI Shari'ah Standard 21
- The cash and interest-bearing investments test couldn’t be settled: The figures give 8.6% and 155.1%, on either side of the limit. Includes long-term investments that may be shares in other companies.Source: AAOIFI Shari'ah Standard 21
- The prohibited income test couldn’t be settled: Yahoo reports interest income of $1.3B, more than the company’s cash, investments and receivables could earn at 10% ($388.7M), so that figure was set aside. So the income test can’t be settled.Source: AAOIFI Shari'ah Standard 21
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Frequently Asked Questions about Provident Financial Services, Inc. (PFS)
Is Provident Financial Services (PFS) stock halal?▾
No. Provident Financial Services (PFS) does not pass the AAOIFI Shari’ah Standard 21 screen. Its main business is conventional banking, lending or insurance (SEC industry code 6035 (Savings Institution, Federally Chartered)), which AAOIFI Shari’ah Standard 21 excludes (3/4/1). Last checked 19 September 2026.
What is Provident Financial Services'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. Provident Financial Services's ratio is about 99.2%.
How much dividend purification is required for Provident Financial Services (PFS) stock?▾
Provident Financial Services does not pass the screen, so purification does not apply: the standard does not permit holding it.
Does Provident Financial Services 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. Provident Financial Services'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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