Is CATHAY GENERAL BANCORP (CATY) Halal?

NASDAQ Financial Services United States $3.3B
✗ NOT HALAL
Confidence: 95/100
CATHAY GENERAL BANCORP (CATY) is Not Halal under AAOIFI Standard 21 due to its classification in the Banks - Regional industry, which is excluded under Shariah screening. Companies operating in prohibited sectors such as conventional banking, insurance, alcohol, tobacco, and gambling are automatically excluded regardless of their financial ratios.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI Excluded — Banks - Regional ✗ NOT HALAL
DJIM Excluded — Banks - Regional ✗ NOT HALAL
MSCI Excluded — Banks - Regional ✗ NOT HALAL
S&P Excluded — Banks - Regional ✗ NOT HALAL
FTSE Excluded — Banks - Regional ✗ NOT HALAL

Financial Highlights

P/E Ratio
10.8
Forward: 8.6
EPS
$4.54
Dividend Yield
287.0%
Payout: 30.0%
P/B Ratio
1.1
Revenue
$818M
Growth: 19.6%
Beta
0.8
Average volatility

Profitability

Gross Margin 0.0%
Operating Margin 61.8%
Net Margin 42.3%
Return on Equity (ROE) 10.9%
Return on Assets (ROA) 1.3%

Cash Flow & Balance Sheet

Operating Cash Flow$369M
Free Cash Flow$364M
Total Debt$173M
Total Assets$24.2B

Price & Trading

Last Close$49.60
50-Day MA$50.69
200-Day MA$48.55
Avg Volume476K
Beta0.8
52-Week Range
$36.06
$54.99

About CATHAY GENERAL BANCORP (CATY)

CEO
Mr. Chang Ming Liu
Employees
1,268
Sector
Financial Services
Industry
Banks - Regional
Country
United States
Exchange
NASDAQ
Market Cap
$3.3B
Currency
USD

Cathay General Bancorp operates as the holding company for Cathay Bank that offers various commercial banking products and services to individuals, professionals, and small to medium-sized businesses in the United States. It offers savings accounts, checking accounts, money market deposit accounts, certificates of deposit, individual retirement accounts, and public funds deposits, and acceptance of checking, savings, demand deposits, time deposits, real estate, and consumer loans. The company also provides loan products, such as commercial real estate loans, commercial loans, small business administration loans, residential mortgage loans, real estate construction loans, and home equity lines of credit, and installment loans to individuals for household and other consumer expenditures. In addition, it offers trade financing, letter of credit, wire transfer, foreign currency spot and forward contract, safe deposit, overdraft, cash checking, automatic teller machine, Internet banking, investment, and other customary bank services, as well as investment products and services, such as stocks, bonds, mutual funds, insurance, annuities, and advisory services. The company was formerly known as Cathay Bancorp, Inc. and changed its name to Cathay General Bancorp in November 2003. Cathay General Bancorp was founded in 1962 and is headquartered in Los Angeles, California.

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Frequently Asked Questions

Is CATHAY GENERAL BANCORP (CATY) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), CATHAY GENERAL BANCORP is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is CATHAY GENERAL BANCORP's debt ratio?

CATHAY GENERAL BANCORP's debt ratio is not available under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%.

What are CATHAY GENERAL BANCORP's key financial metrics?

CATHAY GENERAL BANCORP has a market capitalization of $3.3B, trailing P/E ratio of 10.8, and revenue of $818M. Return on equity stands at 10.9%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.