<PAGE> 1
                            Form 10-Q


                SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C.  20549

                Quarterly Report Under Section 13
              of the Securities Exchange Act of 1934




For Quarter Ended     September 30, 1996    Commission file number  2-80466  




                          Norwest Financial, Inc.                            
      (Exact name of registrant as specified in its charter)




                Iowa                                    42 1186565           
     (State or other jurisdiction of                (I.R.S. Employer
      incorporation or organization)                 Identification No.)




   206 Eighth Street, Des Moines, Iowa                      50309            
(Address of principal executive offices)                   (Zip Code)



Registrant's telephone number, including area code    (515) 243-2131         



Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the registrant
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.  Yes   X .  No     .

Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.  Common Stock (without par
value):  1,000 shares outstanding as of November 1, 1996.

The registrant meets the conditions set forth in General Instruction H(1)(a)
and (b) of Form 10-Q and is therefore filing this Form with the reduced
disclosure format.





<PAGE> 2
                  PART I.  FINANCIAL INFORMATION

                     NORWEST FINANCIAL, INC.

                   Consolidated Balance Sheets

                      (Thousands of Dollars)


                                             (Unaudited)
                                            September 30,   December 31,

         Assets                                 1996            1995

Cash and cash equivalents                    $  108,806      $   72,991

Marketable securities                           804,811         757,291



Finance receivables:
  Consumer:
    Loans                                     3,289,255       3,172,895
    Sales finance                             1,632,584       1,567,629
    Other                                       492,442         586,840
  Commercial                                    484,884         507,480

            Total finance receivables         5,899,165       5,834,844

  Less allowance for credit losses              168,022         158,618

            Finance receivables - net         5,731,143       5,676,226



Notes receivable - affiliates                   556,647         552,005



Property and equipment (at cost, less
  accumulated depreciation of $93,472 
  for 1996 and $94,334 for 1995)                 71,254          63,888

Deferred income taxes                            51,054          40,072

Other receivables from affiliate                                 31,643

Other assets                                    173,852         345,143


            Total assets                     $7,497,567      $7,539,259





See accompanying notes to consolidated financial statements.
<PAGE> 3
                     NORWEST FINANCIAL, INC.

                   Consolidated Balance Sheets

                      (Thousands of Dollars)


                                            (Unaudited)
                                           September 30,    December 31,
            Liabilities and 
         Stockholder's Equity                   1996            1995

Loans payable - short-term:
  Commercial paper                          $1,807,286       $1,739,683
  Affiliates                                    71,840
  Other                                                         218,800
Unearned insurance premiums and commissions    137,309          140,020
Insurance claims and policy reserves            39,680           34,683
Accrued interest payable                        77,598           76,916
Other payables to affiliates                    23,735                 
Other liabilities                              228,622          210,029 

Long-term debt:  
  Senior                                     3,842,990        3,864,531
  Subordinated                                 197,000          217,000
  Subordinated - affiliate                      50,000                  

            Total long-term debt             4,089,990        4,081,531

            Total liabilities                6,476,060        6,501,662





Stockholder's equity:
  Common stock without par value
    (authorized 1,000 shares,
     issued 1,000 shares)                        3,855            3,855 
  Additional paid in capital                    90,766           90,766
  Retained earnings (note 2)                   929,920          933,366
  Foreign currency translation adjustment       (5,149)          (5,393)
  Net unrealized holding gain   
    on marketable securities                     2,115           15,003 


            Total stockholder's equity       1,021,507        1,037,597

            Total liabilities and 
            stockholder's equity            $7,497,567       $7,539,259






See accompanying notes to consolidated financial statements.
<PAGE> 4
                                  
                       NORWEST FINANCIAL, INC.
                                  
           Statements of Consolidated Earnings (Unaudited)
                                  
                       (Thousands of Dollars)

<TABLE>
<CAPTION>
                                               Quarter Ended            Nine Months Ended
                                               September 30,              September 30,       

                                              1996        1995           1996         1995
<S>                                         <C>         <C>          <C>           <C>
Income:

  Finance charges and interest              $303,295    $283,085     $  896,659    $  826,511

  Insurance premiums and commissions          35,184      33,970        102,815        92,118

  Other income (note 3)                       44,853      44,885        136,296       119,577

         Total income                        383,332     361,940      1,135,770     1,038,206



Expenses:

  Operating expenses                         128,685     119,530        383,101       348,017

  Interest and debt expense                   92,557      92,165        279,964       264,141

  Provision for credit losses                 49,295      39,680        139,131       101,491

  Insurance losses and loss expenses           9,102      10,337         29,139        28,529

         Total expenses                      279,639     261,712        831,335       742,178

         Earnings before income taxes        103,693     100,228        304,435       296,028

Income taxes                                  36,136      35,942        107,881       106,009

         Net earnings                       $ 67,557    $ 64,286     $  196,554    $  190,019

</TABLE>















See accompanying notes to consolidated financial statements.
<PAGE> 5
                      NORWEST FINANCIAL, INC.

              Statements of Consolidated Cash Flows (Unaudited)
             Increase (Decrease) in Cash and Cash Equivalents

                          (Thousands of Dollars)

                                               Nine Months Ended September 30,
<TABLE>
<CAPTION>
                                                     1996            1995
<S>                                              <C>             <C>

Cash flows from operating activities:  
  Net earnings                                   $  196,554      $  190,019
  Adjustments to reconcile net earnings to 
    net cash flows from operating activities:
      Provision for credit losses                   139,131         101,491
      Depreciation and amortization                  19,411          19,366
      Deferred income taxes                          (3,978)           (200)
      Other receivables from affiliate               31,643
      Other assets                                   42,929         (29,645)
      Unearned insurance premiums 
        and commissions                              (2,711)         11,622
      Insurance claims and policy reserves            4,997           2,634
      Accrued interest payable                          682          22,804
      Other payables to affiliates                   23,735          (7,170)
      Other liabilities                              18,593          10,372

Net cash flows from operating activities            470,986         321,293

Cash flows from investing activities:   
  Finance receivables:
      Principal collected                         4,171,482       3,624,057
      Receivables originated or purchased        (4,365,530)     (4,080,803)
  Proceeds from sales of marketable securities      113,588          64,916
  Proceeds from maturities of 
    marketable securities                            41,374          31,482
  Purchase of marketable securities                (222,374)       (165,924)
  Net additions to property and equipment           (17,809)        (14,418)
  Net increase in notes receivable - affiliates      (4,642)       (388,696)
  Contributed subsidiaries received, net of 
    cash and cash equivalents                                         2,477
  Other                                             119,707         130,612

Net cash flows used for investing activities       (164,204)       (796,297)

Cash flows from financing activities:
  Net decrease in loans payable -
    short term                                      (79,357)       (169,462)
  Proceeds from issuance of long-term debt:
      Senior                                        100,000         929,411
      Subordinated - affiliate                       50,000
  Repayments of long-term debt:                                       
      Senior                                       (121,610)        (81,638)
      Subordinated                                  (20,000)        (30,650)
  Dividends paid                                   (200,000)       (130,000)

Net cash flows from (used for)
  financing activities                             (270,967)        517,661

Net increase in cash and cash equivalents            35,815          42,657

Cash and cash equivalents beginning of period        72,991          63,496

Cash and cash equivalents end of period          $  108,806      $  106,153
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE> 6
                   NORWEST FINANCIAL, INC.
                                   
             Notes to Consolidated Financial Statements (Unaudited)
   
   
   The accompanying unaudited financial statements and notes have been
   prepared in accordance with the accounting policies set forth in Norwest
   Financial, Inc.'s 1995 Annual Report on Form 10-K and should be read in
   conjunction with the Notes to Consolidated Financial Statements therein. 
   In the opinion of management, all adjustments (none of which were other
   than normal recurring accruals) necessary to present fairly the
   financial statements for the periods presented have been included.
   
   
   1.    Principles of Consolidation.  
   
   The consolidated financial statements include the accounts of Norwest
   Financial, Inc. (the "Company") and subsidiaries.  Intercompany accounts
   and transactions are eliminated.  The Company is a wholly-owned
   subsidiary of Norwest Financial Services, Inc. which is a wholly-owned
   subsidiary of Norwest Corporation.  
   
   2.    Dividend Restrictions.
   
   Certain of the Company's bank credit agreements contain requirements as
   to maintenance of net worth (as defined).  Approximately $48 million of
   consolidated retained earnings was unrestricted at September 30, 1996.
   
   3.    Other Income.
   
   Income from affiliates was $13.9 million and $13.2 million for the
   quarters ended September 30, 1996 and 1995, respectively, and $42.2
   million and $30.3 million for the nine months ended September 30, 1996
   and 1995, respectively.
   
   Interest and dividends from marketable securities and cash equivalents
   were $13.2 million and $12.2 million for the quarters ended September
   30, 1996 and 1995, respectively and $38.9 million and $36.8 million for
   the nine months ended September 30, 1996 and 1995, respectively.
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   <PAGE> 7
                   NORWEST FINANCIAL, INC.
                              
                                   Management's Discussion and Analysis
                of Financial Condition and Results of Operations
   
   
   Norwest Financial's performance for the third quarter of 1996 closely
   paralleled performance for the first nine months of 1996.  The
   discussion and analysis that follows, therefore, is limited to a
   discussion of the first nine months as a whole and does not include a
   separate discussion of the third quarter unless otherwise noted.
   
   Norwest Financial's total income (revenue) increased 9% for the first
   nine months ($1,135.8 million in the first nine months of 1996 compared
   with $1,038.2 million in the first nine months of 1995).  
   
   Income from finance charges and interest increased 8% for the first nine
   months ($896.7 million in the first nine months of 1996 compared with
   $826.5  million in the first nine months of 1995).  Changes in income
   from finance charges and interest result primarily from (1) changes in
   the amount of finance receivables outstanding and (2) changes in the
   rate of charge on those receivables.  In total, average finance
   receivables outstanding in the first nine months of 1996 increased 10%
   from the first nine months of 1995; average consumer receivables
   outstanding increased 11% while average commercial receivables
   outstanding declined 1%.
   
                                           Nine Months Ended September 30,
   
   Rate of charge on finance receivables:             1996       1995
   
         Consumer                                     21.23%     21.63%
         Commercial                                   14.99      14.70
         Total                                        20.70      20.97
   
   The increase in income from finance charges and interest was due to
   growth in average finance receivables outstanding offset somewhat by the
   decline in the rate of charge.  The increase in average finance
   receivables was due primarily to regular business activity.  
   
   Insurance premiums and commissions increased 12% ($102.8 million in the
   first nine months of 1996 compared with $92.1 million in the first nine
   months of 1995).  Changes in insurance premiums and commissions
   generally correspond to  changes in average consumer finance loans
   outstanding (those secured by real estate and not secured by real
   estate).  Average consumer finance loans outstanding increased 5% in the
   first nine months of 1996 compared with the first nine months of 1995. 
   In addition, Norwest Financial began providing credit insurance as part
   of the consumer finance business of several affiliates in the second
   quarter of 1995 and a non-related company in the fourth quarter of 1995. 
   Insurance premiums and commissions on these arrangements were $13.7 
   million in the first nine months of 1996 compared with $5.0 million in
   the first nine months of 1995.  Insurance premiums and commissions
   increased 4% in the third quarter of 1996 compared with the third
   quarter of 1995 ($35.2 million compared with $34.0 million). Average
   consumer finance loans outstanding increased 4% in the third quarter of
   1996 compared with the same period in 1995.  In addition, the income
   from the credit insurance provided as part of the consumer finance
   business of several affiliates and a non-related company totaled $4.9
   million in the third quarter of 1996 compared with $3.6 million in the
   third quarter of 1995.
   
   <PAGE> 8
                            NORWEST FINANCIAL, INC.
   
                      Management's Discussion and Analysis
          of Financial Condition and Results of Operations, Continued
   
   
   Insurance losses and loss expenses increased 2% ($29.1  million in the
   first nine months of 1996 compared with $28.5 million in the first nine
   months of 1995).  Insurance losses and loss expenses on the new
   insurance arrangements noted above were $1.6 million in the first nine
   months of 1996 compared with $.7 million in the first nine months of
   1995.
   
   Other income increased 14% ($136.3 million in the first nine months of
   1996 compared with $119.6 million in the first nine months of 1995).  
   Income from affiliates was $42.2 million in the first nine months of
   1996 compared with $30.3 million in the first nine months of 1995. 
   Changes in income from affiliates result from changes in notes
   receivable - affiliate combined with management fees charged to
   affiliates.  Average notes receivable - affiliate increased $179 million
   from the first nine months of 1995.  Effective May 4, 1995, Norwest
   Financial, Inc. agreed to lend $500 million in term loans to an
   affiliate, Island Finance Puerto Rico, Inc.  This debt has a weighted
   average interest rate of 8.80% and matures in 2000.  Other income
   remained the same in the third quarter of 1996 compared with the third
   quarter of 1995 ($44.9 million).  Income from affiliates was $13.9 
   million in the third quarter of 1996 compared with $13.2  million in the
   third quarter of 1995.
   
   Operating expenses increased 10% ($383.1 million in the first nine
   months of 1996 compared with $348.0 million in the first nine months of
   1995).  The increase was due primarily to increases in employee
   compensation and benefits and other costs resulting from business
   expansion.  At September 30, 1996, Norwest Financial was operating 1,061
   consumer finance branch offices compared with 1,025 at September 30,
   1995.
   
   Interest and debt expense increased 6% ($280.0 million in the first nine
   months of 1996 compared with $264.1 million in the first nine months of
   1995).  Changes in interest and debt expense result primarily from (1)
   changes in the amount of borrowings outstanding due to funding
   requirements for receivables, dividends, and notes receivable -
   affiliates and (2) changes in the cost of those borrowings.  Average
   total outstanding borrowings in the first nine months of 1996 increased
   11% from the first nine months of 1995.
   
                                         Nine Months Ended September 30,
   
   Costs of funds:                               1996       1995
   
         Short-term                              5.41%      6.21%
         Long-term                               6.92       7.00
         Total                                   6.46       6.77
   
   Changes in average debt outstanding generally corresponds to changes in
   average finance receivables outstanding combined with the change in
   notes receivable - affiliates.  Average finance receivables and notes
   receivable - affiliates increased 12% from the first nine months of
   1995.
   <PAGE> 9
                   NORWEST FINANCIAL, INC.
                                   
                      Management's Discussion and Analysis
          of Financial Condition and Results of Operations, Concluded
   
   
   Interest and debt expense remained about the same in the third quarter
   of 1996 compared with the third quarter of 1995 ($92.6 million compared
   with $92.2 million).  Average total outstanding borrowings in the third
   quarter of 1996 increased 6% from the third quarter of 1995.  The total
   cost of funds was 6.39% in the third quarter of 1996 compared with 6.73%
   in the third quarter of 1995.
   
   Provision for credit losses increased 37% ($139.1 million in the first
   nine months of 1996 compared with $101.5 million in the first nine
   months of 1995).  Net write-offs as a percentage of average net
   receivables outstanding increased to 2.31% in the first nine months of
   1996 compared with 1.77% in the first nine months of 1995.
   
   Federal and state income taxes increased 2% ($107.9 million in the first
   nine months of 1996 compared with $106.0 million in the first nine
   months of 1995).  The increase was due primarily to the increase in
   earnings before income taxes.  The effective tax rate was 35.4% for the
   first nine months of 1996 and 35.8% for the first nine months of 1995.
   
   The Company and one of its Canadian subsidiaries maintain bank lines of
   credit and revolving credit agreements to provide an alternative source
   of liquidity to support the commercial paper borrowings.  At September
   30, 1996, lines of credit and revolving credit agreements totaling
   $1,328 million were being maintained at 32 unaffiliated banks.  None of
   this credit was in use at the time.
   
   The Company and one of its Canadian subsidiaries obtain long-term debt
   capital primarily from (i) the issuance of debt securities to the public
   through underwriters on a firm-commitment basis, (ii) the issuance of
   debt securities to institutional investors, and (iii) term borrowings
   from commercial banks.  The Company also obtains long-term debt from the
   issuance of medium-term notes (which may have maturities ranging from
   nine months to 30 years) through underwriters (acting as agent or
   principal).
   
   Norwest Financial anticipates the continued availability of borrowed
   funds, at prevailing interest rates, to provide for Norwest Financial's
   growth in the foreseeable future.  Funds are also generated internally
   from payments of principal and interest received on Norwest Financial's
   finance receivables.








<PAGE> 10
                   PART II.  OTHER INFORMATION
   
                     NORWEST FINANCIAL, INC.
   
   
   Item 5.  Other Information.
   
               RATIOS OF EARNINGS TO FIXED CHARGES
   
   The following table sets forth the ratios of earnings to fixed charges
   of Norwest Financial, Inc. and its subsidiaries for the periods
   indicated:
   
         Nine Months Ended                   Years Ended December 31,    
         September 30, 1996           1995    1994    1993    1992   1991
   
                2.06                  2.13    2.26    2.22    2.02   1.74
   
   
   The ratios of earnings to fixed charges have been computed by dividing
   net earnings plus fixed charges and income taxes by fixed charges.  Fixed
   charges consist of interest and debt expense plus one-third of rentals
   (which is deemed representative of the interest factor).
   
   Item 6.  Exhibits and Reports on Form 8-K.
   
   (a)  Exhibits:
   
    Exhibit (12)    Computation of ratios of earnings to fixed charges for
                the years ended December 31, 1995, 1994, 1993, 1992 and
                1991 and the nine months ended September 30, 1996.
   
   (b)  Reports on 8-K.
   
            No reports on Form 8-K were filed during the quarter for which this
   report is filed.  
   
   
                       S I G N A T U R E S
   
   Pursuant to the requirements of the Securities Exchange Act of 1934, the
   registrant has duly caused this report to be signed on its behalf by the
   undersigned thereunto duly authorized.
   
                                     NORWEST FINANCIAL, INC.
   
   Date: November 1, 1996
   
   
                                     By    \s\ Robert W. Bettle         
                                                 Robert W. Bettle
                                           Vice President and Controller
                                           (Principal Accounting Officer)