ASB will be opening a new regional centre in mid-2018 on the corner of Bryce and Barton Street.
The retail stores which currently sit on the premises have either already closed or are in the process, making way for a major revamp of the building.
A spokesperson said the new 1150 square metre centre would provide office space and meeting rooms for more than 90 people from the local ASB retail, commercial, insurance and rural banking teams.
The spokesperson said the new branch would not necessarily mean the closure of the Victoria Street premises.
"ASB's branch footprint is constantly under review. There are no changes to ASB's Hamilton CBD branch network at this stage," they said.
The ground floor of the refurbished building will support customers with the latest digital banking services, including 24-hour ATMs.
ASB executive general manager corporate, commercial and rural Steve Jurkovich said ASB was delighted to announce plans for the purpose-built regional centre in the heart of Hamilton.
Wallace Development Company helped design the building and general manager Paul Broederlow says it is an exciting project to be involved with.
"We have had the privilege of working with ASB in the past, and this new project has the hallmark of being a significant enhancement to the Hamilton CBD," Mr Broederlow said.
Primeproperty Group Ltd currently owns 500 Victoria Street, and CEO Eyal Aharoni said he doubted ASB would renew its lease on the retail space. Genesis Energy, which leases the remainder of the building, would be moving to another location in a year's time also.
"The building will have its services upgraded," he said.
Mr Aharoni said Primeproperty was currently working with architects to upgrade the building, but the exterior would likely stay more or less the same.
"It's going to mainly upgrade to the air conditioning and possibly a new lobby."
Mr Aharoni said the location, availability of parking and refurbishment would mean it would not be a problem finding a new tenant.