Barclays is considering raising funds by selling shares to existing shareholders, the bank confirmed today, after weeks of talk it will bolster its balance sheet that way.
The bank declined to comment, however, on weekend newspaper reports that it was close to raising £4 billion from sovereign wealth funds in a deal that would be completed in the next two weeks.
Britain's third-biggest bank has one of the thinnest capital cushions in Europe after fundraising by other banks, and has faced persistent speculation of a rights issue or share sale.
Though Barclays has taken less of a hit from credit crunch losses than other banks, its capital cushion - with a core Tier 1 capital ratio of 5.1 per cent at the end of 2007 - is now one of the smallest, after Royal Bank of Scotland and HBOS unveiled big rights issues.
The bank also said today that its profit before tax in May was "well ahead" of the monthly run rate for 2007, with investment banking and investment management profits in line and strong growth in retail and commercial banking.