KANSAS CITY, Mo. — H&R Block Inc. predicts annual profits will grow 10 percent to 20 percent over the next three years as the company expands services to its traditional tax customers and improves margins in other business segments.

Meeting in New York with industry analysts, company executives also said on Tuesday that the company is seeing heavy interest in the potential sale of its mortgage lending arm and should be better prepared for this year's tax season than it was last year, when technology problems and heavy competition chased an estimated 250,000 customers elsewhere.

"When the wave hits, the wave hits, and we are on the verge of that wave hitting," said Mark Ernst, the company's chairman and chief executive, later adding: "We are in a good position to continue to grow the business."

For the key January-April tax season, H&R Block, the nation's largest tax preparer, is predicting a high single-digit increase in revenue and earnings over last year.

Analysts surveyed by Thomson Financial expect fourth-quarter earnings, which include most of the tax season, to increase 9 percent on a 2 percent increase in revenue.

Most of the gain is being driven by price increases, but company officials said they also expect a low single-digit increase in retail clients this year, attracted by 700 new offices and a number of new products aimed at early season tax filers.

The company has long sold loans to customers wanting immediate access to their tax refunds, typically after the first of the year when they receive their W-2. In November, however, H&R Block began offering loans that didn't require a W-2, eliminating a marketing edge held by its two largest competitors, Jackson Hewitt Tax Services and Liberty Tax Services.

H&R Block is offering the loans through debit cards available from the company's new bank, a process Ernst said both keeps profits within the company and charges customers a lower interest rate than if the loan checks were processed by third parties.

Consumer advocacy groups have complained about refund anticipation loans and their high interest rates in the past, leading H&R Block to warn customers of the fees.

Still, Ernst said the loans have proven very popular, with 1.25 million customers already applying for one, and help attract and retain customers who aren't known for their corporate loyalty.

The company also has streamlined its TaxCut brand of software and is experimenting this year with a product that mixes tax preparation software with live tax assistance, which Ernst said is aimed at "hybrid" customers who want a more hands-on approach to their taxes but still want some backup and support.