--- title: "Is The Toronto-Dominion Bank Stock Halal?" canonical: https://www.halalwallet.ca/is-it-halal/the-toronto-dominion-bank-stock publisher: HalalWallet license: CC BY 4.0 verdict: not_halal verdict_label: Not Halal entity_type: stock ticker: TD.TO exchange: TSX last_reviewed: 2026-06-14 data_as_of: 2026-04-30 --- # Is The Toronto-Dominion Bank Stock Halal? **Verdict: Not Halal** (Not permissible) The Toronto-Dominion Bank (TD.TO) does not pass Shariah screening: its core business fails the activity screen (TD's core business is conventional interest-based banking in Canada and the United States), and interest-bearing debt / market cap is 256.7% against the < 30% limit (data as of 2026-04-30), and cash + interest-bearing securities / market cap is 166.9% against the < 30% limit (data as of 2026-04-30), and impermissible income / total revenue is 75.6% 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 TD Bank fails Shariah screening at the business-activity stage, the same way every conventional bank does. TD's revenue comes from taking deposits and lending at interest across its Canadian personal and commercial banking and large U.S. retail banking franchises, plus conventional wealth management, insurance, and wholesale banking. In fiscal 2025, reported net interest income was $33.1 billion against $67.8 billion of total reported revenue, roughly half, and that reported total was itself inflated by a one-time gain on the sale of TD's investment in Charles Schwab. Interest-based lending is the engine of the business, which places TD outside the AAOIFI business screen's roughly 5% tolerance for impermissible revenue by a wide margin. Both Zoya and Musaffa publicly classify TD as not Shariah-compliant, and Shariah-screened indices and funds available to Canadians, including Wealthsimple's WSHR and the S&P/TSX 60 Shariah, exclude conventional banks by construction. As with the other Big Six banks, this is a categorical exclusion: no quarter-to-quarter change in TD's ratios can fix it, because the issue is what the company does, not how much debt it carries. Canadian Muslim investors drawn to TD for its dividend should know the dividend stream itself derives primarily from interest income. The screened alternatives on the TSX tend to be in railways, energy, materials, and industrials, and any individual name should be re-verified on a current screening platform before buying. ## Business activity screen Result: Fail The Toronto-Dominion Bank (TD Bank Group) is one of Canada's largest banks, operating through Canadian Personal and Commercial Banking, U.S. Retail, Wealth Management and Insurance, and Wholesale Banking segments. For fiscal 2025 (year ended October 31, 2025) TD reported total revenue of $67,777 million on a reported basis, comprising net interest income of $33,062 million and non-interest income of $34,715 million. TD's core business is conventional interest-based banking in Canada and the United States. Per its Q4 2025 news release, reported net interest income of $33,062 million was approximately 49% of total reported fiscal 2025 revenue of $67,777 million (reported non-interest income in fiscal 2025 was elevated by the one-time gain on the sale of TD's Schwab investment; on an adjusted revenue basis of $61,810 million, net interest income is an even larger share). The remaining revenue is predominantly from conventional financial services. This is a clear 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 | 256.7% | < 30% | Fail | | Cash + interest-bearing securities / market cap | 166.9% | < 30% | Fail | | Impermissible income / total revenue | 75.6% | < 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 - **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 - TD.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) - TD Q4 2025 News Release (fiscal 2025 results) (https://www.td.com/content/dam/tdcom/canada/about-td/pdf/quarterly-results/2025/q4/q4-2025-news-release-en.pdf) - TD 2025 Annual Report (https://www.td.com/content/dam/tdcom/canada/about-td/pdf/quarterly-results/2025/q4/2025-annual-report-en.pdf) - Zoya screener page for TD (https://zoya.finance/stocks/td) - Musaffa screener page for TD.TO (https://musaffa.com/stock/TD.TO/) - 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 Toronto-Dominion Bank (TD.TO) stock halal? No. The Toronto-Dominion Bank fails Shariah screening — see the screen table and analysis on this page for the specific business-activity or ratio reasons. ### Does The Toronto-Dominion Bank pass the AAOIFI financial ratio screen? As of 2026-04-30: interest-bearing debt is 256.7% of market cap (limit < 30%); cash plus interest-bearing securities is 166.9% (limit < 30%). The impermissible-income line is verified against the annual filing where noted on this page. ### Is The Toronto-Dominion Bank held in halal ETFs like SPUS or HLAL? No — as of our last check, The Toronto-Dominion Bank is not held by WSHR. 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