Barclays Mulls Rights Issue, Plans Branch 'Makeovers'

Barclays might launch a rights issue in the near future, a statement from the bank has indicated.

The comments suggest that the sale of new shares, a popular way of raising revenue among banks, is "under active consideration". Barclays also said that profits for last month were "well ahead" of those in May 2007.

News of the potential sale comes following Barclays' loss of almost £2 billion worth of underperforming assets so far in 2008, due to the credit crunch. Rival RBS has also enjoyed a markedly successful £24 billion rights issue, with 97 per cent of new shares sold. Nevertheless, such sales generally prove controversial among investors, as the value of existing stock is diluted by the creation of extra shares.

"A further announcement will be made in the event that the board of Barclays decides to pursue such an equity issuance,'' the bank said in a statement.

News of the potential rights issue comes as Barclays employ the services of a design guru in order to re-invent the look of the bank's branches. Deanna Oppenheimer, who has previously reinvented US chain Washington Mutual, has proposed a series of innovations, the Times reports.

In recent trials of the "new look" branches in a Northampton warehouse, curved glass frontages, designer-clad concierges monitoring queues and extra-absorbant doormats - a key customer concern in a rainy country - have all been tested. Ms Oppenheimer's innovations are scheduled to be rolled out to branches over the next year.