MyState Limited announced a net profit after tax for the 2018/19 financial year of A$31.0 million, slightly down on its reported $31.5 million profit last year, and in line with half-year guidance.The FY 19 result, however, was boosted by a post-tax contribution of $1.2 million from the sale of MyState's retail financial planning business in June 2019, divested to streamline and simplify the bank's operations. A key part of MyState's simpler banking strategy is its push into digital services, and it now offers a full online banking proposition. "Digitisation has allowed the bank to provide services across Australia in a way that has not been possible in the past," Melos Sulicich, MyState managing director and chief executive officer, told analysts and media on Friday."Our digital platform is a key driver of organic customer growth outside of our traditional heartland areas [of Tasmania and Central Queensland].""Our online customer numbers have doubled in the last 12 months in an environment where we have relatively low market awareness."Continued above system loan growth in FY19 pushed MyState's loan book above $5 billion during FY19 for the first time. Loans in New South Wales, Victoria and Queensland now comprise 55 per cent of the MyState loan book, with its heartland of Tasmania sitting at 42 per cent."We achieved lending growth of close to $500 million [up 10.7 per cent on FY18]," Sulicich said. Sulicich attributed the growth in the loan book to the bank's increasing digital capability, claiming it was achieving loan application turnarounds from its broker network that were two and half days faster than the industry average.New online accounts have also successfully targeted "aspirational customers" for deposits, which were up 12 per cent to $3.7 billion. Retail deposits represent almost 69 per cent of the bank's funding."Additionally, we are embarking on a program of back office automation which we envisage will enable a significant change in our operating model and cost profile."MyState's capital adequacy ratio at 30 June 2019 was 12.9 per cent and the CET1 ratio was 11.1 per cent which remains above APRA's 'unquestionably strong' capital targets.Return on average equity for FY19 was 9.7 per cent, a metric Sulicich said remained high compared to regional bank peers.The Board declared a final dividend of 14.5 cents per share, fully franked, and consistent with the previous year.