(Adds details from investor day presentation, analysts comments, shares)
Feb 27 (Reuters) - JPMorgan Chase & Co raised its key profit goal on Tuesday, and said lower taxes and higher interest rates could help increase its annual pretax net income by up to 17.5 percent in three years.
The bank boosted its target for return on tangible common equity (ROTCE), a widely watched profit measure, to 17 percent from 15 percent, according to a presentation on its website ahead of its 10th annual investor day conference.
Several stock analysts had expected the target to be raised to at least 16 percent.
The slides showed that JPMorgan expects changes in the U.S. tax law to add up to 3 percentage points to its ROTCE. The gains included improvements in return on equity in all four of the company's businesses.
For 2017, JPMorgan's ROTCE was 13 percent, excluding one-time accounting adjustments for the tax law change.
The presentation included an earnings simulation that showed annual pretax net income would rise to $44 billion to $47 billion over the next three years, which Credit Suisse analysts said was "reasonably consistent" with their forecast.
Jefferies analyst Ken Usdin said the pretax income projection translated to $33 billion to $36 billion in net income using a 20 percent tax rate. The bank's 2017 net income was $24.44 billion.
JPMorgan is the most profitable of the big U.S. banks. Its 13 percent ROTCE in 2017 compared with about 11 percent at Wells Fargo & Co, Goldman Sachs Group Inc, Bank of America Corp and Morgan Stanley and 8 percent at Citigroup Inc.
The earnings simulation portrayed higher interest rates contributing about $2.5 billion to the increase in pretax profit. The bank projected net interest income of $54 billion to $55 billion for 2018.
The slides also showed annual operating expenses rising to as much as $62 billion in 2018. Total noninterest expense for 2017 was $58.43 billion. Much of the increase in the spending plan is for technology and marketing, the slides showed.
Marking a change from previous investor conferences, Chief Financial Officer Marianne Lake, 48, was assigned a more prominent role of providing updates on each of the company's four major business segments as well as an overview of the company.
The chief executives of the four businesses, who have made presentations in the past, are scheduled only to take questions.
The new order was designed to shorten the conference, according to a person familiar with the matter. But the shift raises Lake's profile as a leading contender to replace Chief Executive Officer Jamie Dimon, 61, who has said he will step down in five years. Dimon named Lake CFO in 2012.
Under Dimon, JPMorgan emerged from the financial crisis bigger and stronger than competitors who suffered debilitating losses.
Shares of JPMorgan were marginally down at $118.58 in premarket trading on light volume.
On Monday, JPMorgan reached an all-time closing high of $118.77, up 11 percent year-to-date, compared with an 8 percent rise in the KBW Bank index and a 4 percent rise in Standard & Poor's 500 stock index.
(Reporting by Sweta Singh in Bengaluru and David Henry and Catherine Ngai in New York; Editing by Saumyadeb Chakrabarty)