BARCLAYS Plc, the UK's third-biggest bank, said first-quarter earnings declined on 1.7 billion pounds (US$3.3 billion) of writedowns caused by losses in credit markets.

Barclays fell as much as 3.2 percent yesterday in London trading after Finance Director Chris Lucas told Bloomberg News the company hasn't ruled out a share sale to replenish depleted capital.

"Earnings momentum is slowing and there is the prospect of significant further writedowns," said Sandy Chen, a London-based analyst at Panmure Gordon & Co, who has a "sell" rating on the stock. "As for rights issues, I would rather be at the front of the queue than at the back."

Royal Bank of Scotland Group Plc and HBOS Plc, two of Britain's biggest banks, are raising about 16 billion pounds to bolster capital after the collapse of the US subprime mortgage market led to losses.

While Barclays' consumer, commercial and securities units were profitable, first-quarter earnings were less than "the very strong prior-year period," Chief Executive Officer John Varley said in a statement. The company didn't disclose how much it earned.

Barclays fell 6.25 pence to 421 pence at in London, valuing the bank at 27.7 billion pounds. The shares are down 16 percent since the start of the year, trailing the eight-member FTSE 350 Banks Index, which fell 10 percent.

First-quarter profit rose in consumer and commercial banking, Barclays said. The bank had "very strong" earnings growth in credit cards and "solid" gains in international retail and commercial banking, Barclays said.

The Barclays Capital securities division was profitable after a gain of 703 million pounds on the unit's notes, it said.