<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, 1997   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 3, 1997.

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                     1997            1996

Cash and cash equivalents          $   98,964     $  141,692

Securities available for sale       1,053,743        816,980

Finance receivables:
  Consumer:
    Loans                           3,910,195      3,324,655
    Sales finance                   2,382,528      1,683,655
    Other                             451,582        447,021
  Commercial                          455,499        494,104

         Total finance receivables  7,199,804      5,949,435

  Less allowance for credit losses    293,505        169,133

         Finance receivables - net  6,906,299      5,780,302



Notes receivable - affiliates         613,085        574,344



Property and equipment (at cost, less
  accumulated depreciation of $103,873
  for 1997 and $89,373 for 1996)       93,403         75,068

Deferred income taxes                  78,893         34,456

Other assets                          342,605        338,003


         Total assets              $9,186,992     $7,760,845

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             1997            1996

Loans payable - short-term:
       Commercial paper               $2,044,461       $1,732,095
          Affiliates                     337,189          173,006
          Other                                           195,000
Unearned insurance premiums
       and commissions                   147,619          136,564
Insurance claims and policy reserves      36,827           35,893
Accrued interest payable                  91,669           75,765
Other payables to affiliates               3,268            5,565
Other liabilities                        257,140          216,031

Long-term debt:
          Senior                       4,908,657        4,080,894
          Subordinated                     2,000           52,000

              Total long-term debt     4,910,657        4,132,894

              Total liabilities        7,828,830        6,702,813



Stockholder's equity:
  Common stock without par value
    (authorized 1,000 shares,
     issued 1,000 shares)                  3,855            3,855
  Additional paid in capital             202,769           90,766
  Retained earnings (note 2)           1,139,335          959,697
  Foreign currency translation 
    adjustment                            (6,856)          (5,991)
  Net unrealized holding gain
    on securities available for sale,
    net of income taxes                   19,059            9,705

          Total stockholder's equity   1,358,162        1,058,032

          Total liabilities and
          stockholder's equity        $9,186,992       $7,760,845


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,

                               1997      1996         1997        1996
<S>                            <C>       <C>          <C>         <C>
Income:

  Finance charges and interest $322,762  $303,295     $  922,719  $  896,659

  Insurance premiums and 
  commissions                    33,894    35,184        103,751     102,815

  Other income (note  3)         52,977    44,853        151,056     136,296

     Total income               409,633   383,332      1,177,526   1,135,770


Expenses:

   Operating expenses           139,003   128,685        399,809    383,101

   Interest and debt expense    102,042    92,557        287,855    279,964

   Provision for credit losses   57,819    49,295        157,195    139,131

   Insurance losses and 
   loss expenses                  9,125     9,102         29,406     29,139

       Total expenses           307,989   279,639        874,265    831,335

       Earnings before 
       income taxes             101,644   103,693        303,261    304,435

Income taxes                     34,004    36,136        104,535    107,881

      Net earnings            $  67,640 $  67,557   $    198,726 $  196,554


</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,

                                                1997             1996
Cash flows from operating activities:
  Net earnings                              $   198,726     $   196,554
  Adjustments to reconcile net earnings to
      net cash flows from operating activities:
      Provision for credit losses               157,195         139,131
      Depreciation and amortization              23,890          19,411
      Deferred income taxes                      (1,509)         (3,978)
      Other receivables from affiliate                           31,643
      Other assets                              (60,651)         42,929
      Unearned insurance premiums and
        commissions                              10,120          (2,711)
        Insurance claims and policy reserves    (12,428)          4,997
      Accrued interest payable                   13,795             682
      Other payables to affiliates               (2,297)         23,735
      Other liabilities                          31,095          18,593

Net cash flows from operating activities        357,936         470,986

Cash flows from investing activities:
  Finance receivables:
      Principal collected                     4,139,548       4,171,482
      Receivables originated or purchased    (4,444,668)     (4,365,530)
  Proceeds from sales of securities              87,058         113,588
  Proceeds from maturities of securities         57,868          41,374
  Purchases of securities                      (331,273)       (222,374)
       Net additions to property 
       and equipment                            (25,087)        (17,809)
   Net increase in notes 
   receivable - affiliates                   (1,138,196)         (4,642)
  Cash and cash equivalents of contributed
    subsidiaries received                         3,258
  Other                                         160,599         119,707

Net cash flows used for investing activities (1,490,893)       (164,204)

Cash flows from financing activities:
  Net (increase) decrease in loans
    payable - short term                        281,549         (79,357)
  Proceeds from issuance of long-term debt:
      Senior                                  1,251,882         100,000
      Subordinated - affiliate                                   50,000
  Repayment of long-term debt:
      Senior                                   (503,473)       (121,610)
      Subordinated                              (50,000)        (20,000)
  Dividends paid                                 (1,729)       (200,000)
  Paid in capital                               112,000

Net cash flows from (used for) financing
  activities                                  1,090,229        (270,967)

Net increase (decrease) in cash and
  cash equivalents                              (42,728)         35,815

Cash and cash equivalents beginning of period   141,692          72,991

Cash and cash equivalents end of period     $    98,964     $   108,806

See accompany 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  1996  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.  ("NFSI")  which is a wholly-owned  subsidiary
of Norwest Corporation ("Norwest").

2.   Dividend Restrictions.

Certain  of  the  Company's  bank  credit  agreements  contain
requirements  as  to  maintenance of net worth  (as  defined).
Approximately  $489 million of consolidated retained  earnings
was unrestricted at September 30, 1997.

3.   Other Income.

Income  from  affiliates was $13.9 million  for  both  of  the
quarters  ended  September  30,  1997  and  1996,  and   $40.8
million   and   $42.2  million  for  the  nine  months   ended
September 30, 1997 and 1996, respectively.

Interest  and  dividends from securities  available  for  sale
and  cash  equivalents were $17.8 million  and  $13.2  million
for   the   quarters  ended  September  30,  1997  and   1996,
respectively  and  $47.7 million and  $38.9  million  for  the
nine months ended September 30, 1997 and 1996, respectively.

4.   Capital Infusion.

On  April 1, 1997, the Company received a capital infusion  of
$112  million  from Norwest Financial Services, Inc.  for  the
sole  purpose  of investing in securities.  All of  the  funds
received  in  the  capital  infusion  have  been  invested  in
securities  and none of these funds are currently  being  used
in the operations of the company.

<PAGE 7>
                   NORWEST FINANCIAL, INC.
                              
   Notes to Consolidated Financial Statements (Unaudited)


5.   Business Combinations.

Norwest,   through   its  wholly-owned  subsidiary,   Fidelity
Acceptance   Holding,   Inc.   ("FAHI"),   acquired   Fidelity
Acceptance  Corporation on August 31, 1997.   The  acquisition
was  accounted for as a purchase.  Funding necessary for  this
acquisition   (totaling  approximately   $1.1   billion)   was
provided  to  FAHI  by  the Company.  On  September  2,  1997,
Norwest  made  a  capital contribution, without consideration,
of  all of the issued and outstanding shares of capital  stock
of  FAHI  to  NFSI.   Immediately  thereafter,  NFSI  made   a
capital  contribution,  without  consideration,  of  all   the
issued  and  outstanding shares of capital stock  of  FAHI  to
the  Company.  This capital contribution was accounted for  in
a  manner  similar  to  a  pooling of interests,  except  that
results  of  prior  periods  have  not  been  restated.    The
principal  business  of  Fidelity Acceptance  Corporation  and
its  subsidiaries ("Fidelity") is making direct loans  secured
by   automobiles   and  purchasing  sales  finance   contracts
directly  from  automobile  dealers.   Fidelity  operated  147
branch  offices  in  31 states and Guam and had  approximately
$1.1  billion in finance receivables outstanding at  the  time
of the contribution.

<PAGE 8>
                   NORWEST FINANCIAL, INC.
                              
            Management's Discussion and Analysis
      of Financial Condition and Results of Operations


Norwest  Financial's  performance for  the  third  quarter  of
1997   closely  paralleled  performance  for  the  first  nine
months  of  1997.  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,   through   its  wholly-owned  subsidiary,   Fidelity
Acceptance   Holding,   Inc.   ("FAHI"),   acquired   Fidelity
Acceptance  Corporation on August 31, 1997.   The  acquisition
was  accounted for as a purchase.  Funding necessary for  this
acquisition   (totaling  approximately   $1.1   billion)   was
provided  to  FAHI  by  the Company.  On  September  2,  1997,
Norwest  made  a  capital contribution, without consideration,
of  all of the issued and outstanding shares of capital  stock
of  FAHI  to  NFSI.   Immediately  thereafter,  NFSI  made   a
capital  contribution,  without  consideration,  of  all   the
issued  and  outstanding shares of capital stock  of  FAHI  to
the  Company.  This capital contribution was accounted for  in
a  manner  similar  to  a  pooling of interests,  except  that
results  of  prior  periods  have  not  been  restated.    The
principal  business  of  Fidelity Acceptance  Corporation  and
its  subsidiaries ("Fidelity") is making direct loans  secured
by   automobiles   and  purchasing  sales  finance   contracts
directly  from  automobile  dealers.   Fidelity  operated  147
branch  offices  in  31 states and Guam and had  approximately
$1.1  billion in finance receivables outstanding at  the  time
of the contribution.

Norwest  Financial's total income (revenue) increased  4%  for
the  first  nine  months ($1,177.5 million in the  first  nine
months  of  1997 compared with $1,135.8 million in  the  first
nine months of 1996).

Income  from  finance charges and interest  increased  3%  for
the  first  nine  months ($922.7 million  in  the  first  nine
months  of  1997  compared with $896.7 million  in  the  first
nine   months  of  1996).   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 first  nine
months  of  1997  increased 4% from the first nine  months  of
1996;  average consumer receivables outstanding  increased  5%
while  average  commercial  receivables  outstanding  declined
4%.    Excluding   Fidelity,   average   finance   receivables
outstanding  in  the first nine months of  1997  increased  2%
from the first nine months of 1996.

                               Nine Months Ended September 30,

Rate of charge on finance 
  receivables:                       1997        1996

     Consumer                       21.02%      21.23%
     Commercial                     13.88       14.99
     Total                          20.46       20.70

<PAGE 9>
                   NORWEST FINANCIAL, INC.
                              
            Management's Discussion and Analysis
 of Financial Condition and Results of Operations, Continued


The  increase in income from finance charges and interest  was
due  to  growth  in  average finance  receivables  outstanding
offset  in  part  by the decline in the rate of  charge.   The
increase  in average finance receivables was due primarily  to
regular   business  activity  and  the  addition  of  Fidelity
receivables.

Insurance  premiums  and  commissions  increased  1%   ($103.8
million  in  the  first  nine months  of  1997  compared  with
$102.8  million  in the first nine months of  1996.)   Changes
in  insurance  premiums and commissions  generally  correspond
to  changes in average consumer finance loans outstanding  not
secured  by  real  estate.   Average  consumer  finance  loans
outstanding  not secured by real estate increased  3%  in  the
first  nine  months  of  1997 compared  with  the  first  nine
months   of   1996.   Insurance  losses  and   loss   expenses
increased 1% ($29.4 million in the first nine months  of  1997
compared  with  $29.1  million in the  first  nine  months  of
1996).

Other  income increased 11% ($151.1 million in the first  nine
months  of  1997  compared with $136.3 million  in  the  first
nine  months  of  1996).  Other income increased  18%  in  the
third  quarter of 1997 compared to the third quarter  of  1996
($53.0  million  compared with $44.9 million).   The  increase
in  other  income was due primarily to increases in investment
income.

Operating  expenses increased 4% ($399.8 million in the  first
nine  months  of  1997  compared with $383.1  million  in  the
first  nine  months of 1996).  The increase was due  primarily
to  increases in employee compensation and benefits and  other
costs   resulting  from  business  expansion   including   the
addition   of  Fidelity.   At  September  30,  1997,   Norwest
Financial   was   operating  1,224  consumer  finance   branch
offices compared with 1,061 at September 30, 1996.

Operating expenses increased 8% in the third quarter  of  1997
compared  with  the  third  quarter of  1996  ($139.0  million
compared    with   $128.7   million).    Excluding   Fidelity,
operating expenses increased 4% in the third quarter  of  1997
compared with the third quarter of 1996.

Interest  and  debt  expense increased 3% ($287.9  million  in
the  first  nine  months of 1997 compared with $280.0  million
in  the  first nine months of 1996).  Changes in interest  and
debt  expense result primarily 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 1997 increased 5% from  the  first
nine months of 1996.

<PAGE 10>
                   NORWEST FINANCIAL, INC.
                              
            Management's Discussion and Analysis
 of Financial Condition and Results of Operations, Continued


                              Nine Months Ended September 30,

Costs of funds:                     1997          1996

     Short-term                     5.23%         5.41%
     Long-term                      6.84          6.92
     Total                          6.36          6.46

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 5% from the first nine months of 1996.

Interest  and debt expense increased 10% in the third  quarter
of  1997  compared  with  the third quarter  of  1996  ($102.0
million   compared   with  $92.6  million).    Average   total
outstanding   borrowings  in  the  third   quarter   of   1997
increased  12%  from the third quarter of 1996  primarily  due
to  the  addition of Fidelity.  The total cost  of  funds  was
6.41%  in  the  third quarter of 1997 compared with  6.39%  in
the third quarter of 1996.

Provision  for credit losses increased 13% ($157.2 million  in
the  first  nine  months of 1997 compared with $139.1  million
in  the  first  nine  months of 1996).  Net  write-offs  as  a
percentage  of  average net receivables outstanding  increased
to  2.50%  in  the  first nine months of  1997  compared  with
2.31%  in  the first nine months of 1996.  Excluding Fidelity,
net  write-offs  as  a percentage of average  net  receivables
outstanding  were  2.42% in the first  nine  months  of  1997.
Norwest  Financial, along with the consumer finance  industry,
has  experienced  an  increase in net write-offs.   Management
believes  the  allowance for credit losses  at  September  30,
1997,  and  December 31, 1996, is adequate to absorb  possible
losses in the finance receivables portfolio.

Federal  and  state income taxes decreased 3% ($104.5  million
in  the  first  nine  months  of  1997  compared  with  $107.9
million  in  the  first nine months of 1996).   The  effective
tax  rate  was  34.5% for the first nine months  of  1997  and
35.4% for the first nine months of 1996.

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,  1997,  lines
of  credit  and  revolving credit agreements  totaling  $1,327
million  were  being  maintained  at  33  unaffiliated  banks.
None of this credit was in use at the time.

<PAGE 11>
                   NORWEST FINANCIAL, INC.
                              
            Management's Discussion and Analysis
 of Financial Condition and Results of Operations, Concluded


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  and  one  of  its  Canadian
subsidiaries also obtain 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 12>
                 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,  1997     1996   1995   1994    1993    1992

            2.02             2.11   2.13   2.26    2.22    2.02

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,
               1996,  1995, 1994, 1993 and 1992 and  the  nine
               months ended September 30, 1997.

(b)  Reports on 8-K

Two  reports  on  Form 8-K were filed during the  quarter  for
which  this  report  is  filed.   Accordingly,  the  following
information is furnished:

A  Form  8-K  Current Report dated July 8, 1997 was  filed  to
report,  pursuant  to  Item  5.   (Other  Events),  that   (i)
Norwest   Corporation  ("Norwest")  the  indirect  parent   of
Norwest  Financial, Inc. (the "Company"), had entered  into  a
definitive  purchase  agreement  with  BankBoston  Corporation
for   Norwest   to  acquire  Fidelity  Acceptance  Corporation
("Fidelity"),  and (ii) it was contemplated that  the  Company
would  directly or indirectly acquire Fidelity and  thereafter
own and operate Fidelity and its subsidiaries.

A  Form  8-K Current Report dated September 2, 1997 was  filed
to  report,  pursuant to Item 2.  (Acquisition or  Disposition
of  Assets),  that on August 31, 1997 Norwest had  consummated
the   acquisition   of   Fidelity   through   a   wholly-owned
subsidiary,   and  on  September  2,  1997,  through   capital
contributions,  such subsidiary (along with Fidelity  and  its
subsidiaries)  were  acquired by  the  Company.   Such  report
further  reported that funding necessary for this  acquisition
(totaling  approximately $1.1 billion)  was  provided  by  the
Company.

<PAGE 13>
                     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 3, 1997

                              By /s/ Eric Torkelson
                              Eric Torkelson
                              Vice President and Controller
                              (Principal Accounting Officer)