The Globe and Mail reports in its Friday edition that Bank of Nova Scotia expects to generate $7-billion to $8-billion of excess capital by 2020, giving it the opportunity to return capital to shareholders or make acquisitions. A Reuters dispatch to The Globe quotes chief financial officer Sean McGuckin as telling investors Thursday, "This level of capital provides optionality to consider ongoing dividend increases, share buybacks, organic growth opportunities and further acquisitions." Canada's third-biggest lender also updated its medium-term growth objectives, saying it expected to generate earnings per share growth of 7 per cent or above, compared with a previous target of 5-per-cent to 10-per-cent growth. The bank reaffirmed its return on equity target of 14 per cent or above. The bank has focused its international growth strategy on the Pacific Alliance, a Latin American trading bloc comprising Mexico, Peru, Chile and Colombia. Mr. McGuckin said that he expects that region's contribution to the bank's total revenue to increase toward a 30-per-cent level over the next three years from 23 per cent now. Scotiabank closed Thursday at $80.75, down 97 cents on the Toronto Stock Exchange.