This Growth Stock Is Blowing Away Its Industry

Most investors don't view the banking sector as a high-growth industry, especially when it comes to large-cap banks that tend to go slow and steady. But one large bank that has clearly distinguished itself as a growth stock is SVB Financial Group (NASDAQ: SIVB), which has $191 billion in assets and is the parent company of Silicon Valley Bank. The stock has been absolutely ripping ever since the pandemic began in early 2020 and is up more than 150% over the last year. After its latest third-quarter earnings results, I feel confident in saying this is one growth stock that is at the top of its industry. Here's why.

It's not always easy for a bank to grow and put up good profitability -- usually one comes at the expense of the other. But since the pandemic, SVB has been putting up superb returns and growing the bank at an incredibly fast clip. SVB is a niche bank that caters to the start-up, venture capital, and private equity communities through four divisions: commercial banking, private banking and wealth management, investment banking, and fund management. The businesses complement each other nicely and create a lot of cross-selling opportunities.

After the beginning of the pandemic in March 2020, the private markets loaded up with dry powder and just took off, and they haven't slowed since. Global private equity and venture capital investment through the first nine months of 2021 have already exceeded total investment in every year since 2017. There have also been more venture capital-backed initial public offerings through Q3 than any year going back to 2017.

Source Fool.com