Bank gains offset miner weakness, FTSE steady

* FTSE 100 up 0.1 percent

* Gains in banks offsets weakness in miners and energy firms

* BA up after it agrees to merger terms with Spain's Iberia

By Harpreet Bhal

LONDON, Nov 13 (Reuters) - Britain's top share index was litle changed early on Friday, as strength in banks offset weaker miners with investors awaiting U.S. data, while British Airways (BAY.L) rose after agreeing to a merger with Iberia.

By 0914 the FTSE 100 .FTSE was up 3.76 points at 5,280.26 points, a day after closing at a three-week high.

The index is up 2.7 percent this week and has so far rebounded 53 percent since hitting a floor in March.

British Airways (BAY.L) climbed 3 percent, following its announcement on Thursday of a prelimiary agreement for a $7 billion merger with Spain's Iberia (IBLA.MC) to create the world's third-largest airline by revenue. [ID:nLC092017]

"The main story is of course British Airways and Iberia. Focus is now on whether the synergies and cost cuts... can be sufficient to bring the strong growth that is needed to turn both businesses around," said Richard Griffiths, senior trader at Spreadex.

With no UK economic data due for release, investors' attention will be drawn to data from across the Atlantic, such as the September U.S. international trade figures at 1330 GMT and the University of Michigan consumer sentiment data for November at 1455 GMT.

"Equity markets are... waiting on the figures coming out of the U.S. later and looking closely at whether the dollar can continue its strong run," Griffiths said.

Banks were higher, with Barclays (BARC.L), HSBC (HSBA.L), Lloyds Banking Group, Royal Bank of Scotland (RBS.L) and Standard Chartered (STAN.L) up 0.2 to 0.8 percent.

Lloyds Banking Group has more than 700 million pounds of debts and investments tied up in UK-based real estate investor Kenmore Property Group, the Times newspaper reported.

Energy firms were broadly stronger, as crude prices edged up above $77 a barrel CLc1 BG Group (BG.L) and BP (BP.L) added 1.1 and 0.2 percent respectively, while Royal Dutch Shell (RDSa.L) shed 0.8 percent.

Metals prices held steady as the dollar clung to its gains. Currencies were in focus as U.S. President Barack Obama kicks off his tour of Asia. [ID:nOBAMASIA]