Frequently asked questions
Is Bread Financial Holdings (BFH) stock halal to invest in?
Yes, BFH is not Shariah-compliant based on the company’s latest financial reports
and therefore considered halal to invest in. Last updated on Aug 27, 2024.
No, BFH is not Shariah-compliant based on the company’s latest financial reports
and therefore not considered halal to invest in. Last updated on Aug 27, 2024.
BFH is flagged as not Shariah-compliant in terms of Shariah compliance based on the company's
latest financial reports. This means that while the company's operations do not definitively violate Islamic
guidelines, there are certain aspects of Bread Financial Holdings's business that require careful consideration.
Last updated on Aug 27, 2024.
Does Bread Financial Holdings have any interest income?
Yes, Bread Financial Holdings does have interest income. According to the company's latest annual report for
the fiscal year ending Dec 31, 2023, Bread Financial Holdings reported revenue of
4295000000 and interest income of
5145000000. The interest income represents
54.5% of the combined total. It's worth noting that some companies
may report additional interest income as part of their revenue. For a detailed breakdown of all interest
income and revenue segments, please refer to the full Shariah compliance report available in the Zoya app.
No, Bread Financial Holdings has not reported any interest income. According to the company's latest annual
report for the fiscal year ending Dec 31, 2023, Bread Financial Holdings reported total revenue
of 4295000000, with no separate interest income disclosed. However,
it's worth noting that some companies may report interest income as part of their revenue. For a detailed
breakdown of all interest income and revenue segments, please refer to the full Shariah compliance
report available in the Zoya app.
What guidelines are used to determine if Bread Financial Holdings stock is Shariah-compliant?
We use the guidelines set by the Accounting and Auditing Organization for Islamic Financial Institutions
(AAOIFI) to assess Shariah compliance. AAOIFI is a leading international organization that establishes
standards for Islamic finance. Their guidelines help determine if a company's business activities and
financial structure align with Islamic principles. These standards are widely respected in the Islamic
finance industry and provide a consistent framework for evaluating the Shariah compliance of stocks and
other financial instruments. AAOIFI's Shariah board includes renowned scholars such as Sheikh Muhammad
Taqi Usmani, Sheikh AbdulSattar Abu Ghuddah, and Sheikh Abdullah AlManea.
How often is Bread Financial Holdings stock reviewed for Shariah compliance?
The Shariah compliance status of Bread Financial Holdings stock is reviewed on a regular basis, with a minimum
frequency of once per quarter. However, if there are any significant changes or major developments
in the company's operations that may impact its compliance, an immediate review will be conducted to
ensure ongoing adherence to Shariah principles.
How can I stay updated on Bread Financial Holdings's compliance status?
To stay informed, we recommend regularly checking Zoya for updates. You can also enable alerts within
the Zoya app to receive notifications whenever there is a change in the Shariah compliance of BFH,
or any other stocks you are monitoring. This is particularly useful as Shariah compliance can fluctuate
due to changes in a company's financial ratios or business activities.
Are dividends from Bread Financial Holdings stock considered halal?
Yes, dividends from BFH are considered halal. However, you may need to purify a portion of the
dividend if the company has any impermissible revenue. Shariah standards typically allow up to 5% of
revenue from impermissible sources for a stock to remain compliant. To find the exact percentage of
impermissible revenue for Bread Financial Holdings (BFH), check the Zoya app. For more details on the
purification process, read
our comprehensive guide.
No, dividends from BFH are not considered halal because the stock is currently not
Shariah-compliant. When a stock is non-compliant, any dividends received from it are considered
impermissible income and should be donated to charity as a form of purification. To learn more about
the purification process and how to handle impermissible income, read
our comprehensive guide.
Do I need to pay Zakat on my Bread Financial Holdings shares?
If you hold Bread Financial Holdings stock as an investment, through an Employee Stock Ownership
Plan (ESOP), stock options, restricted stock units (RSUs), or any other form of stock ownership, and
meet the Nisab threshold, you may be required to pay Zakat on it. The calculation of Zakat on stocks
can be complex and depends on various factors. To help make this easy, we've created a free
Zakat calculation tool. For an even
easier experience, use the Zoya mobile app, where you can link your brokerage account to automatically
import holdings.
