--- title: "Is The Bank of Nova Scotia Stock Halal?" canonical: https://www.halalwallet.ca/is-it-halal/the-bank-of-nova-scotia-stock publisher: HalalWallet license: CC BY 4.0 verdict: not_halal verdict_label: Not Halal entity_type: stock ticker: BNS.TO exchange: TSX last_reviewed: 2026-06-14 data_as_of: 2026-04-30 --- # Is The Bank of Nova Scotia Stock Halal? **Verdict: Not Halal** (Not permissible) The Bank of Nova Scotia (BNS.TO) does not pass Shariah screening: its core business fails the activity screen (Scotiabank's core business is conventional interest-based lending in Canada, Latin America, and other international mark), and interest-bearing debt / market cap is 202.9% against the < 30% limit (data as of 2026-04-30), and impermissible income / total revenue is 78.7% against the < 5% limit (data as of 2026-04-30). It is not held by Shariah-screened ETFs WSHR. Screened alternatives exist in the same sector — see the halal stock screeners and ETF guides below. > HalalWallet is not a Shariah authority and does not issue religious rulings. We compile the most complete public record of what Shariah scholars, screening authorities, and mainstream standards say — reproduced from primary sources with dates and citations — and let you decide. ## How we read the evidence Scotiabank fails Shariah screening for the same fundamental reason as RBC and TD: it is a conventional bank whose business is lending money at interest. In fiscal 2025, net interest income was $21.5 billion out of $37.7 billion in total revenue, about 57 percent, an even higher proportion than at RBC or TD. Scotiabank's distinguishing feature, its large international banking franchise across Latin America and the Caribbean, does not change the analysis, because the international business is conventional interest-based banking too. Under the AAOIFI business-activity screen, a company whose primary business is conventional finance is excluded before any financial ratios are checked. Zoya publicly classifies BNS as not Shariah-compliant, and Shariah-screened products available in Canada, such as Wealthsimple's WSHR ETF and the S&P/TSX 60 Shariah index, exclude conventional banks by design. For a Canadian Muslim investor, Scotiabank's relatively high dividend yield is sometimes raised as a reason to make an exception, but the screening logic does not allow for one: the dividend is paid out of earnings that are predominantly interest income. Investors seeking TSX income within a screened universe generally look to permissible-sector names that currently pass the financial ratios, verified through a screening app, or to a purpose-built Shariah-compliant fund. ## Business activity screen Result: Fail The Bank of Nova Scotia (Scotiabank) is a conventional Canadian bank with significant international operations, reporting through Canadian Banking, International Banking, Global Wealth Management, and Global Banking and Markets segments. For fiscal 2025 (year ended October 31, 2025) it reported total revenue of $37,741 million, comprising net interest income of $21,522 million and non-interest income of $16,219 million. Scotiabank's core business is conventional interest-based lending in Canada, Latin America, and other international markets. Per its 2025 annual report and Q4 2025 earnings release, net interest income of $21,522 million represented approximately 57% of total fiscal 2025 revenue of $37,741 million, the highest net-interest share among the three banks in this batch. The remainder is predominantly conventional financial-services fee income. This is a categorical business-screen failure under AAOIFI-style screening. ## Financial ratio screen (AAOIFI) Data as of: 2026-04-30 | Screen | Value | Limit | Result | |---|---|---|---| | Interest-bearing debt / market cap | 202.9% | < 30% | Fail | | Cash + interest-bearing securities / market cap | 6.4% | < 30% | Pass | | Impermissible income / total revenue | 78.7% | < 5% | Fail | Screening basis: AAOIFI Shariah Standard No. 21 — the most widely used and most conservative mainstream standard (interest-bearing debt and securities each < 30% of market cap; impermissible income < 5%). Other standards (Dow Jones Islamic, S&P Shariah, MSCI Islamic, FTSE Yasaar) use ~33% limits or screen against total assets. Full methodology: https://www.halalwallet.ca/halal-stock-screening-methodology ## Scholars' and screeners' positions - **Wealthsimple Shariah World Equity Index ETF (WSHR)**: Not held in WSHR as of 2026-06-11. Absence can reflect screen failure or index scope — verify before citing as a screen outcome. ([source](https://help.wealthsimple.com/hc/en-ca/articles/1500011334461-Stocks-held-in-the-Wealthsimple-Shariah-World-Equity-Index-ETF-WSHR)) - **undefined**: undefined - **SP Funds S&P 500 Sharia ETF (SPUS)**: Verify current SPUS schedule before citing as held (reference SOI 2026-02-28). ([source](https://www.sec.gov/Archives/edgar/data/1742912/000200032426001717/spus-soi_022826.htm)) - **Wahed FTSE USA Shariah ETF (HLAL)**: Verify current HLAL holdings before citing as held (reference 2026-06-05). ([source](https://stockanalysis.com/etf/hlal/holdings/)) ## Sources - BNS.TO latest filings on SEDAR+ (balance sheet 2026-04-30) (https://www.sedarplus.ca/csa-party/records/document.html) - AAOIFI Shariah Standards (https://aaoifi.com) - Scotiabank Q4 2025 Earnings Release (fiscal 2025 results) (https://www.scotiabank.com/content/dam/scotiabank/corporate/quarterly-reports/2025/q4/Q425_Quarterly_Press_Release-EN.pdf) - Scotiabank 2025 Annual Report (https://www.scotiabank.com/content/dam/scotiabank/corporate/quarterly-reports/2025/q4/Annual_Report_2025_EN.pdf) - Zoya screener page for BNS (https://zoya.finance/stocks/bns) - WSHR holdings list (Wealthsimple) (https://help.wealthsimple.com/hc/en-ca/articles/1500011334461-Stocks-held-in-the-Wealthsimple-Shariah-World-Equity-Index-ETF-WSHR) - S&P Shariah Indices Methodology (spglobal.com) (https://www.spglobal.com/spdji/pt/documents/methodologies/methodology-sp-shariah-indices.pdf) ## Frequently asked questions ### Is The Bank of Nova Scotia (BNS.TO) stock halal? No. The Bank of Nova Scotia fails Shariah screening — see the screen table and analysis on this page for the specific business-activity or ratio reasons. ### Does The Bank of Nova Scotia pass the AAOIFI financial ratio screen? As of 2026-04-30: interest-bearing debt is 202.9% of market cap (limit < 30%); cash plus interest-bearing securities is 6.4% (limit < 30%). The impermissible-income line is verified against the annual filing where noted on this page. ### Is The Bank of Nova Scotia held in halal ETFs like SPUS or HLAL? No — as of our last check, The Bank of Nova Scotia is not held by WSHR. 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