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SECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549

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Form 10-Q

Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

For Quarter Ended September 30, 2000

Commission file number 2-80466

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

Iowa(State or other jurisdiction of incorporation or organization)

42 1186565(I.R.S. Employer Identification No.)206 Eighth Street, Des Moines, Iowa(Address of principal executive offices)

50309(Zip Code)


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

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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) 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 8, 2000.

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.

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## 

PART I.  FINANCIAL INFORMATION

WELLS FARGO FINANCIAL, INC.

Consolidated Balance Sheets (Unaudited)

(Thousands of Dollars)

|                                                                                                           |                         | September 30,
2000 |            | December 31,
1999
|---------------------------------------------------------------------------------------------------------- | ----------------------- | ------------------ | ---------- | -----------------
|Assets                                                                                                    
|Cash and cash equivalents                                                                                  |                         | $                  | 183,631    |                  
|Securities available-for-sale                                                                              |                         |                    | 1,198,378  |                  
|Finance receivables                                                                                        |                         |                    | 10,361,768 |                  
|Less allowance for credit losses                                                                           |                         |                    | 414,259    |                  
|                                                                                                           |                         |                    |            |                  
|                                                                                                           | Finance receivablesnet |                    |            | 9,947,509        
|                                                                                                           |                         |                    |            |                  
|Notes receivableaffiliates                                                                                |                         |                    | 401,675    |                  
|Property and equipment (at cost, less accumulated depreciation of $137,111 for 2000 and $130,253 for 1999) |                         |                    | 62,793     |                  
|Deferred income taxes                                                                                      |                         |                    | 148,893    |                  
|Other assets                                                                                               |                         |                    | 383,262    |                  
|                                                                                                           |                         |                    |            |                  
|                                                                                                           |                         | Total assets       |            | $                
|                                                                                                           |                         |                    |            |                  

See
accompanying notes to consolidated financial statements.

2

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WELLS FARGO FINANCIAL, INC.

Consolidated Balance Sheets (Unaudited)

(Thousands of Dollars)

|                                            |                                                                                               | September 30,
2000                         |         | December 31,
1999 |           
|------------------------------------------- | --------------------------------------------------------------------------------------------- | ------------------------------------------ | ------- | ----------------- | ----------
|Liabilities and Stockholder's Equity        |                                                                                              
|Loans payableshort-term:                   |                                                                                               |                                            |         |                   |           
|                                            | Commercial paper                                                                              |                                            | $       | 2,567,988         |           
|                                            | Affiliates                                                                                    |                                            |         | 443,737           |           
|                                            | Other                                                                                         |                                            |         | 179,340           |           
|Unearned insurance premiums and commissions |                                                                                               |                                            | 142,078 |                   |           
|Insurance claims and policy reserves        |                                                                                               |                                            | 34,698  |                   |           
|Accrued interest payable                    |                                                                                               |                                            | 118,326 |                   |           
|Other payables to affiliates                |                                                                                               |                                            | 99,932  |                   |           
|Other liabilities                           |                                                                                               |                                            | 342,559 |                   |           
|Long-term debt:                             |                                                                                               |                                            |         |                   |           
|                                            | Senior                                                                                        |                                            |         | 6,233,852         |           
|                                            | Affiliate                                                                                     |                                            |         | 500,000           |           
|                                            |                                                                                               |                                            |         |                   |           
|                                            |                                                                                               | Total liabilities                          |         |                   | 10,662,510
|                                            |                                                                                               |                                            |         |                   |           
|Stockholder's equity:                       |                                                                                               |                                            |         |                   |           
|                                            | Common stock without par value (authorized 1,000 shares, issued and outstanding 1,000 shares) |                                            |         | 3,855             |           
|                                            | Additional paid in capital                                                                    |                                            |         | 209,124           |           
|                                            | Retained earnings                                                                             |                                            |         | 1,465,892         |           
|                                            | Accumulated other comprehensive loss, net of income taxes                                     |                                            |         | (15,240           | )         
|                                            |                                                                                               |                                            |         |                   |           
|                                            |                                                                                               | Total stockholder's equity                 |         |                   | 1,663,631 
|                                            |                                                                                               |                                            |         |                   |           
|                                            |                                                                                               | Total liabilities and stockholder's equity |         | $                 | 12,326,141
|                                            |                                                                                               |                                            |         |                   |           

See
accompanying notes to consolidated financial statements

3

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WELLS FARGO FINANCIAL, INC.

Consolidated Statements of Income (Unaudited)

(Thousands of Dollars)

|             |                                    | Quarter Ended
September 30, |        | Nine Months Ended
September 30,
|------------ | ---------------------------------- | --------------------------- | ------ | -------------------------------
|
|Income:      |                                    |                             |        |                                
|             | Finance charges and interest       |                             | $      | 493,046                        
|             | Insurance premiums and commissions |                             |        | 31,596                         
|             | Other income                       |                             |        | 58,303                         
|             |                                    |                             |        |                                
|             |                                    | Total income                |        |                                
|             |                                    |                             |        |                                
|Expenses:    |                                    |                             |        |                                
|             | Operating expenses                 |                             |        | 200,719                        
|             | Interest and debt expense          |                             |        | 170,268                        
|             | Provision for credit losses        |                             |        | 102,154                        
|             | Insurance losses and loss expenses |                             |        | 11,572                         
|             |                                    |                             |        |                                
|             |                                    | Total expenses              |        |                                
|             |                                    |                             |        |                                
|             |                                    | Income before income taxes  |        |                                
|Income taxes |                                    |                             | 35,997 |                                
|             |                                    |                             |        |                                
|             |                                    | Net income                  |        | $                              
|             |                                    |                             |        |                                

See
accompanying notes to consolidated financial statements.

4

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WELLS FARGO FINANCIAL, INC.

Consolidated Statements of Comprehensive Income (Unaudited)

(Thousands of Dollars)

|                                                                                                   |                                                             | Quarter Ended
September 30,                                               |        | Nine Months Ended
September 30, |       
|-------------------------------------------------------------------------------------------------- | ----------------------------------------------------------- | ------------------------------------------------------------------------- | ------ | ------------------------------- | ------
|
|Net income                                                                                         |                                                             | $                                                                         | 62,235 |                                 | $     
|Other comprehensive income (loss), before income taxes:                                            |                                                             |                                                                           |        |                                 |       
|                                                                                                   | Unrealized gains (losses) on securities available-for-sale: |                                                                           |        |                                 |       
|                                                                                                   |                                                             | Unrealized gains (losses) arising during the period                       |        |                                 | 14,992
|                                                                                                   |                                                             | Reclassification adjustment for net (gains) losses included in net income |        |                                 | 2,246 
|                                                                                                   |                                                             |                                                                           |        |                                 |       
|                                                                                                   |                                                             |                                                                           | 17,238 |                                 |       
|                                                                                                   | Foreign currency translation adjustment                     |                                                                           |        | (836                            | )     
|                                                                                                   |                                                             |                                                                           |        |                                 |       
|                                                                                                   | Other comprehensive income (loss) before income taxes       |                                                                           |        | 16,402                          |       
|Income tax expense (benefit) related to unrealized gains (losses) on securities available-for-sale |                                                             |                                                                           | 5,896  |                                 |       
|                                                                                                   |                                                             |                                                                           |        |                                 |       
|Other comprehensive income (loss), net of income taxes                                             |                                                             |                                                                           | 10,506 |                                 |       
|                                                                                                   |                                                             |                                                                           |        |                                 |       
|                                                                                                   |                                                             | Comprehensive income                                                      |        | $                               | 72,741
|                                                                                                   |                                                             |                                                                           |        |                                 |       

See
accompanying notes to consolidated financial statements.

5

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WELLS FARGO FINANCIAL, INC.

Consolidated Statements of Cash Flows (Unaudited)

(Thousands of Dollars)

|                                              |                                                                                                                             | Nine Months Ended
September 30,             |           
|--------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------- | ----------
|
|Cash flows from operating activities:         |                                                                                                                             |                                             |           
|                                              | Net income                                                                                                                  |                                             | $         
|                                              | Adjustments to reconcile net income to net cash flows from operating activities, net of effect of contributed subsidiaries: |                                             |           
|                                              |                                                                                                                             | Provision for credit losses                 |           
|                                              |                                                                                                                             | Depreciation and amortization               |           
|                                              |                                                                                                                             | Deferred income taxes                       |           
|                                              |                                                                                                                             | Other receivables from affiliates           |           
|                                              |                                                                                                                             | Other assets                                |           
|                                              |                                                                                                                             | Unearned insurance premiums and commissions |           
|                                              |                                                                                                                             | Insurance claims and policy reserves        |           
|                                              |                                                                                                                             | Accrued interest payable                    |           
|                                              |                                                                                                                             | Other payables to affiliates                |           
|                                              |                                                                                                                             | Other liabilities                           |           
|                                              |                                                                                                                             |                                             |           
|Net cash provided by operating activities     |                                                                                                                             |                                             | 526,650   
|                                              |                                                                                                                             |                                             |           
|Cash flows from investing activities:         |                                                                                                                             |                                             |           
|                                              | Finance receivables:                                                                                                        |                                             |           
|                                              |                                                                                                                             | Principal collected                         |           
|                                              |                                                                                                                             | Receivables originated or purchased         |           
|                                              | Proceeds from sales of securities                                                                                           |                                             |           
|                                              | Proceeds from maturities of securities                                                                                      |                                             |           
|                                              | Purchases of securities                                                                                                     |                                             |           
|                                              | Net additions to property and equipment                                                                                     |                                             |           
|                                              | Net decrease in notes receivableaffiliates, net of effect of contributed subsidiaries                                      |                                             |           
|                                              | Cash and cash equivalents of contributed subsidiaries received and subsidiary transferred                                   |                                             |           
|                                              | Cash and cash equivalents of acquired subsidiary                                                                            |                                             |           
|                                              | Other                                                                                                                       |                                             |           
|                                              |                                                                                                                             |                                             |           
|Net cash used by investing activities         |                                                                                                                             |                                             | (1,204,906
|                                              |                                                                                                                             |                                             |           
|Cash flows from financing activities:         |                                                                                                                             |                                             |           
|                                              | Net decrease in loans payableshort term                                                                                    |                                             |           
|                                              | Proceeds from issuance of long term debt:                                                                                   |                                             |           
|                                              |                                                                                                                             | Senior                                      |           
|                                              |                                                                                                                             | Affiliate                                   |           
|                                              | Repayment of senior long-term debt                                                                                          |                                             |           
|                                              | Dividends paid                                                                                                              |                                             |           
|                                              |                                                                                                                             |                                             |           
|Net cash provided by financing activities     |                                                                                                                             |                                             | 682,917   
|                                              |                                                                                                                             |                                             |           
|Net increase in cash and cash equivalents     |                                                                                                                             |                                             | 4,661     
|Cash and cash equivalents beginning of period |                                                                                                                             |                                             | 178,970   
|                                              |                                                                                                                             |                                             |           
|Cash and cash equivalents end of period       |                                                                                                                             | $                                           | 183,631   
|                                              |                                                                                                                             |                                             |           

See accompanying notes to consolidated financial statements.

6

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WELLS FARGO FINANCIAL, INC.

Consolidated Statements of Stockholder's Equity (Unaudited)

(Thousands of Dollars)

|                             |            |   |       |  |   |         |  | Accumulated Other
Comprehensive Income (Loss) |           |         |  
|---------------------------- | ---------- | - | ----- |  | - | ------- |  | --------------------------------------------- | --------- | ------- | -
|
|Balance, December 31, 1998   |            | $ | 3,855 |  | $ | 189,438 |  | $                                             | 1,362,370 |         | $
|Comprehensive income (loss): |            |   |       |  |   |         |  |                                               |           |         |  
|                             | Net income |   |       |  |   |         |  |                                               |           | 201,054 |  
|                             | Other      |   |       |  |   |         |  |                                               |           |         |  
|Contributed subsidiaries     |            |   |       |  |   | 7,259   |  |                                               | 12        |         |  
|Dividends                    |            |   |       |  |   |         |  |                                               | (160,000  | )       |  
|                             |            |   |       |  |   |         |  |                                               |           |         |  
|Balance, September 30, 1999  |            | $ | 3,855 |  | $ | 196,697 |  | $                                             | 1,403,436 |         | $
|                             |            |   |       |  |   |         |  |                                               |           |         |  
|Balance, December 31, 1999   |            | $ | 3,855 |  | $ | 196,697 |  | $                                             | 1,407,743 |         | $
|Comprehensive income:        |            |   |       |  |   |         |  |                                               |           |         |  
|                             | Net income |   |       |  |   |         |  |                                               |           | 173,502 |  
|                             | Other      |   |       |  |   |         |  |                                               |           |         |  
|Contributed subsidiaries     |            |   |       |  |   | 12,427  |  |                                               | (10,182   | )       |  
|Transfer of subsidiary       |            |   |       |  |   |         |  |                                               | (60,171   | )       |  
|Dividends                    |            |   |       |  |   |         |  |                                               | (45,000   | )       |  
|                             |            |   |       |  |   |         |  |                                               |           |         |  
|Balance, September 30, 2000  |            | $ | 3,855 |  | $ | 209,124 |  | $                                             | 1,465,892 |         | $
|                             |            |   |       |  |   |         |  |                                               |           |         |  

See
accompanying notes to consolidated financial statements.

7

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## 

WELLS FARGO FINANCIAL, INC.       Notes to Consolidated Financial Statements (Unaudited)

The
accompanying unaudited consolidated financial statements and notes have been prepared in accordance with the accounting policies set forth in Wells Fargo Financial, Inc.'s
1999 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. The results of operations for interim periods are
not necessarily indicative of the results to be expected for the entire year.

1.Principles of Consolidation.

The consolidated financial statements include the accounts of Wells Fargo Financial, Inc. (the "Company") and subsidiaries (collectively, "Wells Fargo
Financial"). Intercompany accounts and transactions are eliminated. The Company is a wholly-owned subsidiary of Wells Fargo Financial Services, Inc. (the "Parent") which is a wholly-owned
subsidiary of Wells Fargo & Company ("Wells Fargo").

2.Dividend Restrictions.

Certain long-term debt instruments restrict payment of dividends on and acquisitions of the Company's common stock. In addition, such debt
instruments and the Company's bank credit agreements contain certain requirements as to maintenance of net worth (as defined). Approximately $1,014 million of consolidated stockholder's equity
was unrestricted at September 30, 2000.

3.Other Income.

Income from affiliates was $9.5 million and $11.5 million for the quarters ended September 30, 2000 and 1999, respectively, and
$28.1 million and $35.1 million for the nine months ended September 30, 2000 and 1999, respectively.

Interest
and dividends from securities available-for-sale and cash equivalents were $18.9 million and $19.5 million for the quarters ended
September 30, 2000 and 1999, and $57.5 million and $56.8 million for the nine months ended September 30, 2000 and 1999, respectively.

4.Reclassifications.

Certain amounts in the 1999 financial statements have been reclassified to conform to the presentation used in the 2000 financial statements.

8

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5.Finance Receivables.

Finance
receivables are as follows:

September 30,
2000

December 31,
1999(In Thousands)United States consumer finance:Loans secured by real estate

$
2,483,727

$
2,137,593Consumer loans


1,421,023


1,245,427Total loans


3,904,750


3,383,020Sales finance contracts


1,246,262


1,213,878Credit cards


1,084,295


588,499Total United States consumer finance


6,235,307


5,185,397Canadian consumer finance:Loans secured by real estate


104,527


86,848Consumer loans


446,453


432,183Total loans


550,980


519,031Sales finance contracts


464,658


489,259Credit cards


19,260


15,655Total Canadian consumer finance


1,034,898


1,023,945Automobile finance


2,313,251


2,165,745Other


778,312


697,219Total finance receivables

$
10,361,768

$
9,072,306


6.Allowance for Credit Losses.

The
analysis of the allowance for credit losses is as follows:

|                                                         |  | Quarter Ended
September 30, |         | Nine Months Ended
September 30, |  
|-------------------------------------------------------- |  | --------------------------- | ------- | ------------------------------- | -
|
|
|Allowance for credit losses beginning of period          |  | $                           | 390,542 |                                 | $
|Provision for credit losses charged to expense           |  |                             | 102,154 |                                 |  
|Write-offs                                               |  |                             | (94,883 | )                               |  
|Recoveries                                               |  |                             | 13,402  |                                 |  
|Allowance related to receivables contributed or acquired |  |                             | 3,044   |                                 |  
|                                                         |  |                             |         |                                 |  
|Allowance for credit losses end of period                |  | $                           | 414,259 |                                 | $
|                                                         |  |                             |         |                                 |  

9

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7.Statements of Consolidated Cash Flows.

The Company and its subsidiaries consider highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents.
Supplemental disclosure of certain cash flow information is presented below:

Quarter Ended
September 30

Nine Months Ended
September 30,2000

1999

2000

1999(In Thousands)Cash paid for:Interest

$
147,883

$
109,243

$
454,487

$
363,722Income taxes


18,172


2,102


40,939


135,377


8.Segment Information.

The Company has three reportable segments: U.S. consumer finance, Canadian consumer finance, and automobile finance. The Company's operating segments are
determined by product type and geography. U.S. consumer finance operations make loans to individuals and purchase sales finance contracts through 797 consumer finance branches in
47 states, Guam, Saipan, and Puerto Rico. The U.S. consumer finance segment also issues credit cards through two banking subsidiaries. Canadian consumer finance operations make loans to
individuals and purchase sales finance contracts through 148 consumer finance branches in the 10 provinces. Automobile finance operations specialize in purchasing sales finance contracts directly from
automobile dealers and making loans secured by automobiles through
189 branches in 33 states and Puerto Rico. Results from insurance operations are included in the appropriate segment.

10

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Selected
financial information for each segment is shown below:

|                                 |  | U.S.
Consumer
Finance |         | Canadian
Consumer
Finance |   | Automobile
Finance |  | Other* |         | Eliminations |   | Total  
|-------------------------------- |  | --------------------- | ------- | ------------------------- | - | ------------------ |  | ------ | ------- | ------------ | - | -------
|
|
|Quarter Ended September 30,:     |  |                       |         |                           |   |                    |  |        |         |              |   |        
|Finance charges and interest     |  | $                     | 298,615 |                           | $ | 231,120            |  | $      | 62,972  |              | $ | 59,516 
|Intersegment income              |  |                       |         |                           |   |                    |  |        |         |              |   |        
|Total income                     |  |                       | 363,156 |                           |   | 295,153            |  |        | 73,703  |              |   | 65,385 
|Net income                       |  |                       | 36,610  |                           |   | 40,526             |  |        | 9,671   |              |   | 8,509  
|Nine Months Ended September 30,: |  |                       |         |                           |   |                    |  |        |         |              |   |        
|Finance charges and interest     |  |                       | 816,549 |                           |   | 681,395            |  |        | 186,424 |              |   | 176,080
|Intersegment income              |  |                       |         |                           |   |                    |  |        |         |              |   |        
|Total income                     |  |                       | 993,815 |                           |   | 862,011            |  |        | 210,649 |              |   | 194,977
|Net income (loss)                |  |                       | 116,543 |                           |   | 110,519            |  |        | 21,413  |              |   | 25,031 

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11

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9.Recent Accounting Standards.

In June 1998, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards No. 133 (FAS 133),
Accounting for Derivative Instruments and Hedging Activities. In July 1999, the FASB issued FAS 137, Deferral of the Effective Date of FASB Statement No. 133, which defers the
effective date for implementation of FAS 133 to no later than January 1, 2001 for the Company's financial statements. The Company will implement the Statement when effective and is in
the process of completing the analysis required to determine the impact on the financial statements.

10.Business Combinations and Transfers.

Effective January 1, 2000, the Parent made a capital contribution, without consideration, to the Company of the issued and outstanding shares of capital
stock of two of the Parent's consumer finance subsidiaries (the "Contributed Subsidiaries"). This capital contribution was accounted for as a merger of interests under common control. Accordingly, the
assets acquired and liabilities assumed were recorded at historical cost. The contributed subsidiaries had assets totaling $237.8 million and 49 branch offices at the time of the contribution.

Effective
June 1, 2000, the Company transferred the common stock at net book value of its multiple peril crop insurance subsidiary and its wholly owned subsidiary to the
Parent, which subsequently transferred it to another affiliate of Wells Fargo. The multiple peril crop insurance subsidiaries had assets of $86.3 million at the time of the transfer and had a
$7.2 million loss for the year until the time of the transfer.

On
June 30, 2000, one of the Company's banking subsidiaries purchased approximately $400 million in credit card receivables from Conseco Finance Corp., a subsidiary of
Conseco, Inc.

Effective
September 1, 2000, one of the Company's subsidiaries acquired Charter Financial Company, a specialty finance and leasing company. The acquisition was accounted for as
a purchase. Charter has a strong presence in Canada where it offers medium-term, fixed rate, full-payout leases and equipment
financing to clients in targeted industries. Charter had receivables under management of $190 million at the time of the acquisition.

Effective
October 27, 2000, the Company entered into an agreement to acquire substantially all of the assets and assume certain liabilities of an automobile finance company.
The acquisition is to be accounted for as a purchase and is expected to close in the first quarter of 2001. The company to be acquired originates receivables in 33 states, primarily through purchases
of automobile contracts from dealers in the eastern United States. Total receivables managed by this company are approximately $880 million at September 30, 2000.

12

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WELLS FARGO FINANCIAL, INC.
Management's Discussion and Analysis of Financial Condition and Results of Operations

Statements made in Management's Discussion and Analysis may be forward-looking and are made pursuant to the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995. Forward-looking statements address management's present expectations about future performance and involve inherent risks and uncertainties. A
number of important factors (some of which are beyond the Company's control) could cause actual results to differ materially from those in the forward-looking statements. Those factors include the
economic environment, competition, products and pricing in the geographic and business areas in which the Company conducts its operations, prevailing interest rates, changes in government regulations
and policies affecting financial services companies, credit quality and credit risk management, acquisitions, and integration of acquired businesses.

Wells
Fargo Financial's performance for the third quarter of 2000 closely paralleled performance for the first nine months of 2000. 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.

Wells
Fargo Financial's income for the first nine months of 2000 was $173.5 million compared with $201.1 million for the first nine months of 1999. Net income from
ongoing operations, however, increased to $180.7 million for the first nine months of 2000 compared with $176.2 million in the first nine months of 1999. Net income from ongoing
operations excludes the results of subsidiaries engaged in the multiple peril crop insurance and information service businesses.

Well's
Fargo Financial's total income (revenue) decreased 1% for the first nine months ($1,635.1 million in the first nine months of 2000 compared with $1,648.0 million
in the first nine months of 1999). Total income increased approximately 1% for the third quarter ($582.9 million in the third quarter of 2000 compared with $580.5 million in the third
quarter of 1999).

Income
from finance charges and interest increased 15% for the first nine months ($1,394.7 million in the first nine months of 2000 compared with $1,211.6 million in the
first nine months of 1999). Changes in income from finance charges and interest result predominantly 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 2000 increased 15% from the first nine months of 1999; average U.S. consumer
finance receivables outstanding increased 18%, average Canadian consumer finance receivables outstanding increased 8%, average automobile finance receivables outstanding increased 8%, and average
other finance receivables outstanding increased 20%.

Nine Months Ended September 30,2000

1999Rate of charge on finance receivables:U.S. consumer finance

19.23
%
18.99
%Canadian consumer finance

24.32

24.90Automobile finance

18.45

18.68Other

15.02

14.16Total

19.26

19.22


The
increases in income from finance charges and interest were due predominantly to growth in average receivables outstanding. Growth in average receivables for all categories was due
predominately

13

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to regular business activity. Changes in the earned rates of charge were due to changes in prevailing market rates combined with a change in the portfolio mix.

Insurance
premiums and commissions decreased 67% ($83.8 million in the first nine months of 2000 compared with $253.8 million in the first nine months of 1999.)
Insurance losses and loss expenses decreased 80% ($36.3 million in the first nine months of 2000 compared with $179.8 million in the first nine months of 1999). The decreases were
predominantly due to decreases in insurance premiums and commissions and insurance losses and loss expenses on multiple peril crop insurance. The Company transferred the multiple peril crop insurance
operations to another affiliate of Wells Fargo on June 1, 2000.

Other
income decreased 14% ($156.6 million in the first nine months of 2000 compared with $182.7 million in the first nine months of 1999). The decrease in other income
was due predominantly to the elimination of income from the sale of information services in 2000 due to the transfer of this business to the Parent on December 15, 1999.

Operating
expenses increased 5% ($606.0 million in the first nine months of 2000 compared with $576.6 million in the first nine months of 1999). The increase was due
primarily to increases in employee compensation and benefits and other costs relating to business expansion.

Interest
and debt expense increased 22% ($466.1 million in the first nine months of 2000 compared with $381.6 million in the first nine months of 1999). Changes in
interest and debt expense result predominantly from (1) changes in the amount of borrowings outstanding and (2) changes in the cost of those borrowings. Average total outstanding
borrowings in the first nine months of 2000 increased 14% from the first nine months of 1999.

Nine Months Ended September 30,2000

1999Costs of funds:Short-term

6.44
%
5.15
%Long-term

6.60

6.56Total

6.55

6.11


Changes
in average debt outstanding generally correspond to changes in average finance receivables outstanding combined with the change in notes receivableaffiliates.
Average finance receivables and notes receivableaffiliates increased 14% from the first nine months of 1999.

Provision
for credit losses increased 28% ($252.1 million in the first nine months of 2000 compared with $196.6 million in the first nine months of 1999). Net
write-offs increased 19% in the first nine months of 2000.

Nine Months
Ended September 30,

Quarter Ended
September 30,2000

1999

2000

1999Net write-offs, not annualized, as a percentage of average net receivables outstanding:U.S. consumer finance

2.10
%
1.78
%
.83
%
.59
%Canadian consumer finance

3.97

3.29

1.25

1.14Automobile finance

2.22

2.68

.67

.85Other

1.32

2.00

.36

.85Total

2.26

2.19

.80

.74


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During 2000, the provision for credit losses exceeded net write-offs by $33.7 million. At September 30, 2000, the Company had an allowance for credit losses
of $414.3 million (4.00% of receivables) compared with $367.7 million (4.05% of receivables) at December 31, 1999. There were no material changes in estimation methods and
assumptions during 2000 and 1999. Non-accrual finance receivables were $51.6 million at September 30, 2000 compared with $41.3 million at December 31, 1999. In
addition, finance receivables outstanding which were more than three payments contractually delinquent and which were still accruing interest were $136.6 million at September 30, 2000
compared with $110.9 million
at December 31, 1999. Management believes the allowance for credit losses at September 30, 2000, is adequate to absorb probable losses on existing receivables in the finance receivables
portfolio.

Income
taxes decreased 10% ($101.2 million in the first nine months of 2000 compared with $112.3 million in the first nine months of 1999). Income before income taxes
decreased 12% ($274.7 million in the first nine months of 2000 compared with $313.4 million in the first nine months of 1999.) The effective tax rate was 36.8% for the first nine months
of 2000 compared with 35.8% for the first nine months of 1999.

The
Company maintains bank lines of credit and revolving credit agreements to provide an alternative source of liquidity to support the Company's commercial paper borrowings. At
September 30, 2000, lines of credit and revolving credit agreements totaling $1,466 million were being maintained at 32 domestic and international banks; the entire amount was available
on that date. Additionally, the Company's bank subsidiaries, Wells Fargo Financial Bank and Wells Fargo Financial National Bank, have access to federal funds borrowings. At September 30, 2000,
federal funds availability at the two banks was $605 million.

The
Company and a Canadian subsidiary obtain long-term debt capital primarily from the issuance of debt securities to the public through underwriters on a
firm-commitment basis and the issuance of debt securities to institutional investors. The Company and a Canadian subsidiary also obtain long-term debt from the issuance of
medium-term notes (which have maturities ranging from nine months to 30 years) through underwriters (acting as agent or principal).

The
Company anticipates the continued availability of borrowed funds, at prevailing interest rates, to provide for Wells Fargo Financial's growth in the foreseeable future. Funds are
also generated internally from payments of principal and interest on Wells Fargo Financial's finance receivables.

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## 

PART II. OTHER INFORMATION       WELLS FARGO 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 Wells Fargo Financial, Inc. and its subsidiaries for the periods indicated:

Nine Months Ended
September 30, 2000

Years Ended December 31,1999

1998

1997

1996

19951.58

1.78

1.72

2.00

2.11

2.13


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.

|Exhibit (12) |  | Computation of ratios of earnings to fixed charges for the years ended December 31, 1999, 1998, 1997, 1996 and 1995 and the nine months ended September 30, 2000.
|------------ |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------



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## 

SIGNATURES

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.

|                       |  | WELLS FARGO FINANCIAL, INC.
|---------------------- |  | ---------------------------
|Date: November 8, 2000 |  |                            
|                       |  | By                         

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