HSBC , Europe's biggest bank, has agreed to sell its private banking business in Japan to Credit Suisse , the bank said on Wednesday.

HSBC said the value of the gross assets of the business was $2.7 billion (1.7 billion pounds) as of October 31, 2011, but did not disclose the sale price.

The transaction, which is subject to regulatory approvals, is expected to complete during the second quarter of 2012 and represents further progress in the execution of HSBC's strategy outlined at the Investor Day in May 2011, it said in a statement.

(Reporting by Saeed Azhar; Editing by Robert Birsel)