Nov 5 (Reuters) - Bank of America ( BAC ) on Wednesday

raised its closely watched profitability target as the

second-largest U.S. lender looks to grow its market share and

catch up with larger Wall Street rivals.

Top executives are set to outline how BofA plans to grow in

coming years and boost performance, as investors convene in

Boston for the bank's first investor day since 2011.

BofA is now targeting a 16% to 18% return on tangible common

equity (ROTCE) - a key metric investors use to assess a bank's

performance - in the medium term, compared with its earlier

forecast of mid-teens return.

The bank generated a 15.4% ROTCE in the third quarter, while

larger rival JPMorgan ( JPM ) achieved a 20% ROTCE in the same

period, filings showed.

BofA is aiming to increase its share of investment banking

fees by between 50 and 100 basis points in the next three to

five years, while profit per share is expected to grow more than

12%.

In the global investment banking league tables, BofA has

consistently lagged rivals JPMorgan ( JPM ) and Goldman Sachs ( GS )

over the years.

The lender had in August promoted Faiz Ahmad and Mike Joo to

co-heads of global investment banking as part of a broader

leadership reshuffle in the business.

On the trading front, BofA is aiming to capture 9% of the

industry revenue pool in the medium term. It now has a 7.6%

market share, the bank said.

BofA expects net interest income, the difference between

what banks earn on loans and pay on deposits, to grow by 5% to

7% annually over the next five years, driven by loan growth and

fixed rate asset repricing.

Investors will also watch out for signals on succession

plans, as longtime CEO Brian Moynihan completes nearly 16 years

at the helm of BofA.

The CEO, who recently turned 66, announced plans to stay on

through the decade after naming Dean Athanasia and Jim DeMare as

co-presidents and Chief Financial Officer Alastair Borthwick as

executive vice president.

Moynihan took the helm in 2010 in aftermath of the 2008

financial crisis, which threatened to destabilize the global

economy. He integrated the investment bank Merrill Lynch, which

BofA bought from the brink of collapse, paid back a government

bailout and slashed jobs.

After a rocky start, Moynihan engineered a momentous

turnaround, driven by an oft-repeated mantra of "responsible

growth,", but investors are urging the bank to make a higher

return on its investments.

(Reporting by Saeed Azhar in Boston and Arasu Kannagi Basil in

Bengaluru; Editing by Arun Koyyur)