<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    March 31, 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 
May 1, 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)
                                    March 31,     December 31,

           Assets                     1997            1996

Cash and cash equivalents          $  125,209      $  141,692

Securities available for sale         840,792         816,980

Finance receivables:
  Consumer:
    Loans                           3,300,265       3,324,655
    Sales finance                   1,735,262       1,683,655
    Other                             414,048         447,021
  Commercial                          491,837         494,104

       Total finance receivables    5,941,412       5,949,435

  Less allowance for credit losses    171,459         169,133

       Finance receivables - net    5,769,953       5,780,302



Notes receivable - affiliates         604,620         574,344



Property and equipment (at cost, less
  accumulated depreciation of $92,577
  for 1997 and $89,373 for 1996)       77,475          75,068

Deferred income taxes                  40,362          34,456

Other assets                          197,804         338,003


          Total assets             $7,656,215      $7,760,845





See accompanying notes to consolidated financial statements.
<PAGE 3>
                             NORWEST FINANCIAL INC.
                                        
                           Consolidated Balance Sheets
                                        
                             (Thousands of Dollars)


                                   (Unaudited)
                                    March 31,     December 31,
          Liabilities and
        Stockholder's Equity          1997            1996

Loans payable - short-term:
  Commercial paper                 $1,847,310      $1,732,095
  Affiliates                          162,803         173,006
  Other                                               195,000
Unearned insurance premiums
  and commissions                     131,125         136,564
Insurance claims and policy reserves   35,077          35,893
Accrued interest payable               81,560          75,765
Other payables to affiliates           36,211           5,565
Other liabilities                     233,874         216,031

Long-term debt:
  Senior                            3,965,371       4,080,894
  Subordinated                         52,000          52,000

          Total long-term debt      4,017,371       4,132,894

          Total liabilities         6,545,331       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           90,766          90,766
  Retained earnings (note 2)        1,020,745         959,697
  Foreign currency translation
    adjustment                         (7,189)         (5,991)
  Net unrealized holding gain
    on securities available for sale,
    net of income taxes                 2,707           9,705

       Total stockholder's equity   1,110,884       1,058,032

       Total liabilities and
       stockholder's equity        $7,656,215      $7,760,845




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




                                   Three Months Ended March 31,

                                       1997             1996

Income:

  Finance charges and interest       $301,364         $296,425

  Insurance premiums and commissions   35,178           33,078

  Other income (note 3)                47,913           44,825

     Total income                     384,455          374,328


Expenses:

  Operating expenses                  130,694          126,140

  Interest and debt expense            92,879           94,704

  Provision for credit losses          54,749           45,952

  Insurance losses and loss expenses    9,274            9,890

    Total expenses                    287,596          276,686

    Earnings before income taxes       96,859           97,642

Income taxes                           34,082           35,643

    Net earnings                     $ 62,777         $ 61,999











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)

                                         Three Months Ended March
31,

                                              1997           1996
Cash flows from operating activities:
  Net earnings                           $    62,777     $    61,999
  Adjustments to reconcile net earnings to
    net cash flows from operating activities:
    Provision for credit losses               54,749          45,952
    Depreciation and amortization              6,995           6,773
    Deferred income taxes                     (2,280)         (5,396)
    Other receivables from affiliate                       31,643
    Other assets                             (16,436)         26,730
    Unearned insurance premiums and
      commissions                             (5,439)         (5,690)
   Insurance claims and policy reserve          (816)            684
   Accrued interest payable                    5,795           1,692
   Other payables to affiliates               30,646           4,839
   Other liabilities                          17,843           8,139

Net cash flows from operating activities      153,834         177,365

Cash flows from investing activities:
  Finance receivables:
    Principal collected                     1,338,642       1,393,407
    Receivables originated or purchased    (1,383,042)     (1,308,506)
  Proceeds from sales of securities            26,701          49,825
  Proceeds from maturities of securities       18,956          14,461
  Purchases of securities                     (80,093)        (83,032)
  Net additions to property and equipment      (6,262)         (4,343)
  Net decrease(increase) in notes
     receivable - affiliates                  (30,276)         22,896
         Other                                150,229         134,559

Net cash flows from investing activities       34,855         219,267

Cash flows from financing activities:
   Net decrease in loans payable - short term (89,988)     (274,874)
  Proceeds from issuance of long-term debt -
      Senior                                   36,545
  Repayment of long-term debt -
      Senior                                 (150,000)      (14,460)
      Dividends paid                           (1,729)      (75,000)

Net cash flows used for financing activities (205,172)     (364,334)

Net increase(decrease) in cash and cash
   equivalents                                (16,483)       32,298

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

Cash and cash equivalents end of period   $   125,209    $  105,289

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. 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 $460 million of consolidated retained earnings
was unrestricted at March 31, 1997.

3.   Other Income.

Income  from affiliates was $13.7 million and $14.7  million
for  the  three  months  ended  March  31,  1997  and  1996,
respectively.

Interest  and dividends from securities available  for  sale
and  cash  equivalents were $14.2 million and $12.7  million
for  the  three  months  ended  March  31,  1997  and  1996,
respectively.

4.   Subsequent Event.

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.  None of the funds
received  in  the  capital infusion  will  be  used  in  the
operations of the Company.



<PAGE 7>
                   NORWEST FINANCIAL, INC.
                              
            Management's Discussion and Analysis
      of Financial Condition and Results of Operations
                              

Norwest Financial's total income (revenue) increased 3%  for
the  first  three months ($384.5 million in the first  three
months  of  1997 compared with $374.3 million in  the  first
three months of 1996).

Income  from finance charges and interest increased  2%  for
the  first  three months ($301.4 million in the first  three
months  of  1997 compared with $296.4 million in  the  first
three  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
three  months  of  1997 increased 2% from  the  first  three
months  of  1996;  average consumer receivables  outstanding
increased    3%   while   average   commercial   receivables
outstanding declined 2%.

                                        Three Months Ended
                                            March 31,

Rate of charge on finance receivables:   1997      1996

     Consumer                           20.96%    21.00%
     Commercial                         13.77     14.87
     Total                              20.36     20.47

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  6%  ($35.2
million  in  the  first three months of 1997  compared  with
$33.1  million in the first three months of 1996.)   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 three months of 1997 compared with
the  first  three  months  of 1996.   In  addition,  Norwest
Financial  also  provides credit insurance as  part  of  the
consumer finance business of several affiliates and  a  non-
related  company.   Insurance premiums  and  commissions  on
these  arrangements  were $4.4 million in  the  first  three
months of 1997 compared with $4.3 million in the first three
months of 1996.

Insurance  losses  and  loss  expenses  decreased  6%  ($9.3
million in the first three months of 1997 compared with $9.9
million  in  the  first three months  of  1996).   Insurance
losses and loss expenses on the insurance arrangements noted
above  were  $.5 million in the first three months  of  1997
compared with $.4 million in the first three months of 1996.
<PAGE 8>
                   NORWEST FINANCIAL, INC.
                              
            Management's Discussion and Analysis
 of Financial Condition and Results of Operations, Continued


Other  income increased 7% ($47.9 million in the first three
months  of  1997 compared with $44.8 million  in  the  first
three months of 1996).  The increase is due primarily to  an
increase in investment income and other fee income offset in
part by a decrease in income from affiliates.

Operating expenses increased 4% ($130.7 million in the first
three  months  of 1997 compared with $126.1 million  in  the
first three months of 1996).  The increase was due primarily
to increases in employee compensation and benefits and other
costs resulting from business expansion.  At March 31, 1997,
Norwest  Financial  was  operating  1,094  consumer  finance
branch offices compared with 1,024 at March 31, 1996.

Interest and debt expense decreased 2% ($92.9 million in the
first  three months of 1997 compared with $94.7  million  in
the  first  three 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  three months of 1997 remained approximately  the
same as the first three months of 1996.

                                Three Months Ended March 31,

Costs of funds:                    1997           1996

     Short-term                    5.03%          5.51%
     Long-term                     6.85           6.94
     Total                         6.31           6.52
                              
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 2% in the first quarter of 1997 compared with  the
first quarter of 1996.

Provision for credit losses increased 19% ($54.7 million  in
the  first three months of 1997 compared with $46.0  million
in  the  first three months of 1996).  Net write-offs  as  a
percentage of average net receivables outstanding  increased
to .88% in the first three months of 1997 compared with .77%
in the first three months of 1996.  Norwest Financial, along
with  the  consumer  finance industry,  has  experienced  an
increase   in  net  write-offs.   Management  believes   the
allowance for credit losses at March 31, 1997, and  December
31,  1996,  is  adequate to absorb possible  losses  in  the
finance receivables portfolio.


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


Federal  and state income taxes decreased 4% ($34.1  million
in  the  first  three  months of 1997  compared  with  $35.6
million  in  the first three months of 1996).  The  decrease
was  due primarily to the decrease in earnings before income
taxes.  The effective tax rate was 35.2% for the first three
months of 1997 and 36.5% for the first three 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 March 31, 1997,  lines  of
credit  and  revolving  credit  agreements  totaling  $1,326
million  were  being  maintained at 33  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:

     Three  Months  Ended                      Years   Ended
December 31,
      March  31, 1997                 1996     1995     1994
1993    1992

           2.01                       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 three
               months ended March 31, 1997.

(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:  May 1, 1997

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