"The final months of the financial year were overshadowed by the profound human impact of the COVID-19 global health crisis and its economic consequences," Ms Wikramanayake said.

"Macquarie’s full-year result has also been subject to the effects of this crisis and a strong underlying financial performance in FY20 was impacted by a material increase in credit and other impairment charges, primarily reflecting the deterioration in current and expected macroeconomic conditions as a result of COVID-19."

In its outlook, the bank said market conditions were likely to remain challenging as a result of the economic uncertainty created by the pandemic, and it was uncertain how this would affect the coming year's profits. It said short-term forecasting was "extremely difficult" and the bank could not provide meaningful guidance.

Macquarie had issued guidance in February for full-year profits to be "slightly down" on last year's record earnings of almost $3 billion.

Macquarie shares were 1.8 per cent higher at $101.37 in morning trade. UBS analyst Jonathan Mott said the results were in line with market expectations and the bank's outlook was challenging, adding that it was appropriate the bank did not provide guidance in this environment.

The Sydney-based financial group said its less volatile or "annuity-style" businesses, including funds management and retail banking, had generated 13 per cent growth in profits. The more volatile "markets facing" businesses that include commodities trading and mergers and acquisition work fell 35 per cent.

In its annual report, also published on Friday, Macquarie said Ms Wikramanayake was awarded $18.1 million for the year. Her fixed remuneration was $795,740 and the remainder was her retained profit share, which was paid as equity.

While Ms Wikramanayake's total pay was multiples of what the CEOs of the big four banks received last year, she was not the highest paid senior executive at Macquarie, with head of Macquarie Asset Management Martin Stanley awarded $18.9 million for the year after a surge in profit in his division.

Regulators have told banks, which are receiving access to subsidised funds in the COVID-19 crisis, not to pay cash bonuses to senior executives to preserve their capital. Macquarie said all profit share payments to senior executives would be paid as equity instead of cash.

The pandemic had a direct impact on the bank's bottom line by lifting impairment charges sharply to more than $1 billion, from $552 million last year, and the company said its banking division Macquarie Bank did not pay a dividend to the overall group.

The banking regulator has told banks to consider suspending dividends, but unlike other big Australian banks Macquarie makes much of its money overseas and lending to the domestic economy is a relatively small part of its business.

More to come