The Swedish bank, which provides universal services and operates in 25 countries, has been expanding into the UK since the 1990s where it has 207 branches.
Rupert Young, development director for Nurton Developments, said Handlebanken’s continued commitment to the region is demonstrated by the bank’s decision to remain in its current location.
“It's excellent to see an organisation which prides itself on banking continuing to flourish,” he said.
“This expansion is also great sign of the strength of the Birmingham market too."
Nick Lowe, Handelsbanken's regional head, said: "I am delighted by the fact that our branch network in our Central Region, has almost doubled to 42 branches since its inception in 2011, which has resulted in our need to take a little more space.
"The growth is a testament to the success our local relationship banking approach which enables local branches to make local decisions for local customers."