Barclays issued a generally upbeat trading statement for the first quarter today but has explicitly refused to rule out a rights issue to boost its capital ratios.

Barclays said profits for the first quarter had come in below the same time last year. While profits before tax in January and February were broadly in line with 2007, tougher capital conditions meant March was below the very strong figure for the same month the previous year.

The bank reported £1billion of net losses from "credit market turbulence" even after a £700 million gain on the valuation of notes issued by the investment banking arm, Barclays Capital. But Barclays said this business was profitable despite "difficult trading conditions".

In a conference call to journalists, Chris Lucas, the finance director, said the bank had a series of options available, including raising fresh capital.

Pressed on whether there might be a rights issue, he commented: "Part of the attraction of having options is to keep them all available."

Jonh Varley, the chief executive, had said earlier this week he would not "take anything off the table". Mr Lucas added: "We're not going to either rule in or rule out anything at this stage."

Several big banks have had to go to investors for fresh capital because of the credit crunch.

Yesterday Bradford & Bingley was forced to executive a U-turn and announce a £300 million rights issue only weeks after ruling one out.

Banks are under pressure from regulators to raise their capital ratios, Mr Lucas accepted, and Barclays had to be a part of that.

"We have set our targets and they remain the same." The trading statement said Barclays expected its capital and equity ratios to undershoot targets announced in December, at the financial year end, but to recover to these levels in time.

Mr Lucas refused to say if there had been pressure from investors to raise fresh capital. "They are aware of what our targets are," he said. "We will continue to have a dialogue with them."

Mr Varley said Barclaycard had shown "very strong profit growth", the UK retail and commercial banking business performed well and mortgage volumes were "significantly higher" than in 2007.

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