Is Banco Santander (SAN.MC) stock halal?
Screened against AAOIFI Shari’ah Standard 21
No. Banco Santander (SAN.MC) does not pass the AAOIFI Shari’ah Standard 21 screen. Its main business is conventional banking, lending or insurance (Yahoo industry “Banks - Diversified”), which AAOIFI Shari’ah Standard 21 excludes (3/4/1). Last checked 2 October 2026.
Banco Santander 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% | 1633.74% | Review |
| Cash and interest-bearing investments | 30% | 143.24% | Fail |
| Prohibited income | 5% | 169.45% | Fail |
| Not just cash and debts | 90% | 95.60% | Review |
Key Findings & Observations
- Its main business is conventional banking, lending or insurance (Yahoo industry “Banks - Diversified”), which AAOIFI Shari’ah Standard 21 excludes (3/4/1).Source: Business check
- The interest-bearing debt test couldn’t be settled: The figures give 0.0% and 1633.7%, on either side of the limit. The balance sheet is in order of liquidity, as banks and insurers present it, so every liability that isn’t clearly tax, provisions, pensions, policyholder contracts or payables is counted as possible borrowing.Source: AAOIFI Shari'ah Standard 21
- Cash and interest-bearing investments are 143.2% 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 169.5% of total revenue. AAOIFI’s limit is 5% (Shari'ah Standard 21, 3/4/4).Source: AAOIFI Shari'ah Standard 21
- The not just cash and debts test couldn’t be settled: The figures give 8.2% and 95.6%, on either side of the limit. The balance sheet is in order of liquidity, as banks and insurers present it, so every asset that isn’t clearly property, intangibles, tax, pensions, inventory, insurance or a stake in an associate is counted as possible cash or interest-bearing investment.Source: AAOIFI Shari'ah Standard 21
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Frequently Asked Questions about Banco Santander, S.A. (SAN.MC)
Is Banco Santander (SAN.MC) stock halal?▾
No. Banco Santander (SAN.MC) does not pass the AAOIFI Shari’ah Standard 21 screen. Its main business is conventional banking, lending or insurance (Yahoo industry “Banks - Diversified”), which AAOIFI Shari’ah Standard 21 excludes (3/4/1). Last checked 2 October 2026.
What is Banco Santander'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. Banco Santander's ratio is about 1633.7%.
How much dividend purification is required for Banco Santander (SAN.MC) stock?▾
Banco Santander does not pass the screen, so purification does not apply: the standard does not permit holding it.
Does Banco Santander 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. Banco Santander'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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