Using molecular dynamics simulations, we study the transient response of a binary LennardJones glass subjected to periodic shear deformation. The amorphous solid is modelled as the three-dimensional Kob-Andersen binary mixture at a low temperature. The cyclic loading is applied to slowly annealed, quiescent samples, which induces irreversible particle rearrangements at large strain amplitudes, leading to stress-strain hysteresis and a drift of the potential energy towards higher values. We find that the initial response to cyclic shear near the critical strain amplitude involves disconnected clusters of atoms with large nonaffine displacements. In contrast, the amplitude of shear stress oscillations decreases after a certain number of cycles, which is accompanied by the initiation and subsequent growth of a shear band.