<PAGE 1>
                          Form 10-Q
                              
                              
             SECURITIES AND EXCHANGE COMMISSION
                   Washington, D.C.  20549
                              
         Quarterly Report Under Section 13 or 15(d)
           of the Securities Exchange Act of 1934




For Quarter Ended June 30, 1998      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 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 August 3, 1998.

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)

<TABLE>
<CAPTION>
                                      (Unaudited)
                                       June 30,      December 31,
    
           Assets                        1998            1997

<S>                                   <C>               <C>
Cash and cash equivalents             $  181,443      $   94,600

Securities available-for-sale          1,122,335       1,063,600

Finance receivables:
  Consumer:      
    Loans                              3,952,734       3,893,550
    Sales finance contracts            2,737,802       2,332,535
    Credit cards                         429,550         422,435
  Commercial                             510,252         465,601

    Total finance receivables          7,630,338       7,114,121

  Less allowance for credit losses       332,175         297,800

    Finance receivables - net          7,298,163       6,816,321



Notes receivable - affiliates            603,006         646,832



Property and equipment (at cost, less
  accumulated depreciation of $118,967
  for 1998 and $107,435 for 1997)        136,769         102,537

Deferred income taxes                     58,728          64,420

Other assets                             412,707         533,614


          Total assets                $9,813,151      $9,321,924

</TABLE>


See accompanying notes to consolidated financial statements.

<PAGE 3>
                      NORWEST FINANCIAL, INC.
                                 
                    Consolidated Balance Sheets
                                 
                      (Thousands of Dollars)
<TABLE>
<CAPTION>

                                        (Unaudited)
                                         June 30,      December 31,
          Liabilities and 
        Stockholder's Equity               1998            1997
<S>                                     <C>             <C>
Loans payable - short-term:      
  Commercial paper                      $1,960,813      $1,664,796
  Affiliates                               416,827         392,165
  Other                                     67,529         170,000
Unearned insurance premiums
  and commissions                          136,905         143,478
Insurance claims and policy reserves        31,818          30,566
Accrued interest payable                    97,941          93,344
Other payables to affiliates                35,428          13,815
Other liabilities                          301,997         228,557

Long-term debt:
  Senior                                 5,263,065       5,219,413
  Subordinated                                               2,000

      Total long-term debt               5,263,065       5,221,413
      Total liabilities                  8,312,323       7,958,134



Stockholder's equity:
  Common stock without par value
    (authorized 1,000 shares,
     issued 1,000 shares)                    3,855           3,855
  Additional paid in capital               189,438         185,410
  Retained earnings                      1,296,762       1,167,418
  Accumulated other comprehensive
      income                                10,773           7,107

      Total stockholder's equity         1,500,828       1,363,790

      Total liabilities and
      stockholder's equity              $9,813,151      $9,321,924

</TABLE>


See accompanying notes to consolidated financial statements.

<PAGE 4>
                      NORWEST FINANCIAL, INC.
                                 
          Statements of Consolidated Earnings (Unaudited)
                                 
                      (Thousands of Dollars)

<TABLE>
<CAPTION>

                               Quarter Ended June 30,  Six Months Ended June 30,

                                  1998        1997       1998        1997

Income:
<S>                             <C>         <C>        <C>          <C>
 Finance charges and 
   interest                     $365,545    $298,593   $722,008     $599,957

 Insurance  premiums 
   and commissions                33,487      34,679     69,262       69,857

 Other income                     61,365      50,166    116,278       98,079

     Total income                460,397     383,438    907,548      767,893


Expenses:

 Operating expenses              167,985     130,112    332,225      260,806

 Interest and debt expense       119,703      92,934    234,053      185,813

 Provision for credit losses      63,304      44,627    130,480       99,376

 Insurance losses and 
   loss expenses                  10,287      11,007     21,075       20,281
 
 Total expenses                  361,279     278,680    717,833      566,276
    
   Earnings before income taxes   99,118     104,758    189,715      201,617

Income taxes                      34,812      36,449     66,719       70,531

    Net income                  $ 64,306    $ 68,309   $122,996     $131,086

</TABLE>


See accompanying notes to consolidated financial statements.

<PAGE 5>

                       NORWEST FINANCIAL, INC.
                                  
     Consolidated Statements of Comprehensive Income (Unaudited)
                                  
                       (Thousands of Dollars)

<TABLE>
<CAPTION>

                              Quarter Ended June 30,   Six Months Ended June 30,

                                  1998       1997         1998        1997
<S>                             <C>        <C>         <C>          <C> 
Net income                      $64,306    $68,309     $122,996     $131,086

Other comprehensive income,
  before income taxes:
  Unrealized gains on securities
    available-for-sale:
      Unrealized gains arising
        during the period         3,413     18,154      11,678        8,964
      Less:  reclassification
        adjustment for gains
         included in net income   2,038      5,087       3,607        6,521

                                  1,375     13,067       8,071        2,443

  Foreign currency
    translation adjustment       (2,185)       308      (1,711)        (890)

    Other comprehensive income 
      (loss) before income taxes   (810)    13,375       6,360        1,553

  Income tax expense related to
    components of other
    comprehensive income            444      4,437       2,694          811

  Other comprehensive income
    (loss), net of income taxes  (1,254)     8,938       3,666          742

  Comprehensive income          $63,052    $77,247    $126,662     $131,828


</TABLE>





See accompanying notes to consolidated financial statements.

<PAGE 6>

                     NORWEST FINANCIAL, INC.
                                
        Statements of Consolidated Cash Flows (Unaudited)
         Increase(Decrease) in Cash and Cash Equivalents
                                
                     (Thousands of Dollars)
<TABLE>
<CAPTION>
                                                 Six Months Ended June 30,

                                                      1998            1997
<S>                                             <C>            <C>
Cash flows from operating activities:
  Net earnings                                  $   122,996    $   131,086
  Adjustments to reconcile net earnings to
    net cash flows from operating activities:
      Provision for credit losses                   130,480         99,376
      Depreciation and amortization                  23,728         13,963
      Deferred income taxes                           2,777         (6,258)
      Other assets                                   33,813        (21,680)
      Unearned insurance premiums and
        commissions                                  (6,573)        (2,215)
       Insurance  claims and policy  reserves         1,252            340
      Accrued interest payable                        4,597         (6,387)
      Other payables to affiliates                   19,856          6,869
      Other liabilities                              60,964         14,725 
 
Net cash flows from operating activities            393,890        229,819

Cash flows from investing activities:
  Finance receivables:
      Principal collected                         3,208,816      2,767,976
      Receivables  originated or purchased       (3,532,603)    (2,936,450)
  Proceeds from sales of securities                  74,477         63,170
  Proceeds from maturities of securities             93,770         44,372
  Purchases of securities                          (218,911)      (273,843)
  Net additions to property and equipment           (41,715)       (15,302)
  Net increase in notes
    receivable - affili ates                       (226,793)       (50,963)
  Contributed subsidiary received,
    net of cash                                         503
  Other                                              62,641        151,890

Net  cash  flows used for investing activities     (579,815)      (249,150)

Cash flows from financing activities:
  Net increase (decrease) in loans payable
     - short term                                   218,208        (81,453)
  Proceeds from issuance of long-term debt -
      Senior                                        216,451        365,679
  Repayment of long-term debt:
      Senior                                       (159,891)      (348,623)
      Subordinated                                   (2,000)       (50,000)
  Dividends paid                                                    (1,729)
  Paid in capital                                                  112,000

Net cash flows from (used for)
  financing activities                              272,768         (4,126)

Net increase (decrease) in cash and
  cash equivalents                                   86,843        (23,457)

Cash and cash equivalents beginning of period        94,600        141,692

Cash and cash equivalents end of period         $   181,443    $   118,235

</TABLE>

See accompanying notes to consolidated financial statements.

<PAGE 7>

                             NORWEST FINANCIAL, INC.
                                        
           Consolidated Statements of Stockholder's Equity (Unaudited)
                                        
                             (Thousands of Dollars)
                                        
<TABLE>
<CAPTION>
                                                               Accumulated Other
                                                              Comprehensive Income
                                                                     Unrealized Gains
                                   Additional               Foreign   on Securities
                           Common   Paid In    Retained    Currency    Available-
                           Stock    Capital    Earnings   Translation   for-Sale  Total
<S>                         <C>    <C>       <C>          <C>         <C>      <C>
Balance, December 31, 1996  $3,855 $ 90,766  $  959,697   $ (5,991)  $ 9,705   $1,058,032

Comprehensive income:
  Net income                                    131,086                           131,086
  Other                                                       (890)    1,632          742

Paid in capital                     112,000                                       112,000

Dividends                                        (1,729)                           (1,729)

Balance, June 30, 1997      $3,855  $202,766  $1,089,054  $ (6,881)  $11,337   $1,300,131



Balance, December 31, 1997  $3,855  $185,410  $1,167,418  $ (8,757)  $15,864   $1,363,790

Comprehensive income:
  Net income                                     122,996                          122,996
  Other                                                     (1,711)    5,377        3,666

Contributed subsidiary                 4,028       6,348                           10,376

Balance, June 30, 1998      $3,855  $189,438  $1,296,762  $(10,468)  $21,241   $1,500,828

</TABLE>



See accompanying notes to consolidated financial statements.

<PAGE 8>

                   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 1997 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 (collectively, "Norwest
Financial").  Intercompany accounts and transactions are eliminated.  The
Company is a wholly-owned subsidiary of Norwest Financial Services, Inc.
(the "Parent") which is a wholly-owned subsidiary of Norwest Corporation
("Norwest").

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
$850 million of consolidated stockholder's equity was unrestricted at 
June 30, 1998.

3.   Other Income.

Income from affiliates was $17.7 million and $13.2 million for the 
quarters ended June 30, 1998 and 1997, respectively, and $32.5 million
and $26.9 million for the six months ended June 30, 1998 and 1997, 
respectively.

Interest and dividends from securities available-for-sale and cash
equivalents were $18.3 million and $15.7 million for the quarters ended
June 30, 1998 and 1997, respectively and $36.1 million and $29.9 million
for the six months ended June 30, 1998 and 1997, respectively.

4.   Reclassifications.

Certain amounts in the 1997 financial statements have been reclassified
to conform to the presentation used in the 1998 financial statements.

5.   Change in Accounting Policy.

Effective January 1, 1998, the Company adopted Statement of Financial
Accounting Standards No. 130, "Reporting Comprehensive Income" ("FAS
130").  FAS 130 requires disclosures of the components of comprehensive
income and the accumulated balance of other comprehensive income with
total stockholder's equity.  The adoption of FAS 130 has not had a
material effect on the Company's financial statements.

<PAGE 9>
                   NORWEST FINANCIAL, INC.
                              
   Notes to Consolidated Financial Statements (Unaudited)


6.   Business Combinations.

Effective April 21, 1998, one of the Company's Canadian subsidiaries
acquired all of the issued and outstanding shares of capital stock of
The T. Eaton Acceptance Co. Limited ("TEAC") and National Retail 
Credit Services Limited ("NRCS").  The acquisition was accounted for
as a purchase.  TEAC and NRCS are headquartered in Toronto, Ontario and
are primarily engaged in purchasing sales finance contracts.  TEAC and
NRCS had finance receivables outstanding of $305 million at the time of
the acquisition.

Effective June 30, 1998, the Parent made a capital contribution, without
consideration, to the Company of the issued and outstanding shares of
capital stock of Reliable Financial Services, Inc. (the "Contributed
Subsidiary" or "Reliable").  This capital contribution was accounted
for as a merger of interests under common control.  Reliable's
headquarters are in San Juan, Puerto Rico and its principal business is
automobile finance.  Reliable had finance receivables outstanding of 
$293 million at June 30, 1998.

<PAGE 10>

                   NORWEST 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.

Effective August 31, 1997, Norwest, through its wholly-owned subsidiary,
Fidelity Acceptance Holding, Inc. ("FAHI"), acquired Fidelity
Acceptance Corporation.  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.
Effective September 2, 1997, Norwest made a capital contribution,
without consideration, of all of the issued and outstanding shares of
capital stock of FAHI to the Parent.  Immediately thereafter, the Parent
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 as a merger of interests under
common control.  The principal business of Fidelity Acceptance
Corporation and its subsidiaries ("Fidelity") is purchasing sales finance
contracts directly from automobile dealers and making direct loans
secured by automobiles.  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 11>

                   NORWEST FINANCIAL, INC.
                              
            Management's Discussion and Analysis
      of Financial Condition and Results of Operations
                              
Norwest Financial's performance for the second quarter of 1998 closely
paralleled performance for the first six months of 1998.  The discussion
and analysis that follows, therefore, is limited to a discussion of the
first six months as a whole and does not include a separate discussion
of the second quarter unless otherwise noted.

Norwest Financial's total income (revenue) increased 18% for the first
six months ($907.5 million in the first six months of 1998 compared with
$767.9 million in the first six months of 1997).

Income from finance charges and interest increased 20% for the first six
months ($722.0 million in the first six months of 1998 compared with
$600.0 million in the first six months of 1997).  Income from finance
charges and interest increased 3% excluding Fidelity.  Changes in income
from finance charges and interest result primarily from (1) changes in 
the amount of finance receivables outstanding and (2) changes in the
rate of charge on those receivables.  In total, average finance 
receivables outstanding in the first six months of 1998 increased 22%
from the first six months of 1997; average consumer receivables 
outstanding increased 24% while average commercial receivables
outstanding declined 1%.  Excluding Fidelity, average finance
receivables outstanding in the first six months of 1998 increased 5%
from the first six months of 1997.

                                           Six Months Ended June 30,

Rate of charge on finance receivables:           1998   1997

     Consumer                                   20.56%      21.03%
     Commercial                                 14.15       13.59
     Total                                      20.13       20.41

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 acquisitions combined with regular
business activity.

Insurance premiums and commissions decreased 1% ($69.3 million in the
first six months of 1998 compared with $69.9 million in the first six
months of 1997.)  Changes in insurance premiums and commissions
generally correspond to changes in average consumer finance loans
outstanding not secured by real estate and average credit card
receivables outstanding.  Average consumer finance loans outstanding not 
secured by real estate and average credit card receivables outstanding
increased 18% in the first six months of 1998 compared with the first
six months of 1997.  This increase was due primarily to the addition of
Fidelity.  Excluding Fidelity, average consumer finance loans not secured
by real estate and credit card receivables remained constant.
Insurance premiums and commissions in Fidelity during  the first six 
months of 1998 were $3.1 million.

<PAGE 12>

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


Insurance losses and loss expenses increased 4% ($21.1 million in the
first six months of 1998 compared with $20.3 million in the first six 
months of 1997).

Other income increased 19% ($116.3 million in the first six months of
1998 compared with $98.1 million in the first six months of 1997).  The
increase is due primarily to an increase in interest and dividends from
securities available-for-sale and cash equivalents, income from
affiliates and other fee income.

Operating expenses increased 27% ($332.2 million in the first six months
of 1998 compared with $260.8 million in the first six months of 1997).
Excluding Fidelity, operating costs increased 15% in the first six
months of 1998.  The increase was due primarily to increases in employee
compensation and benefits and other costs resulting from business 
expansion.  At June 30, 1998,  Norwest Financial was operating 1,164
consumer finance branch offices compared with 1,097 at June 30, 1997.

Interest and debt expense increased 26% ($234.1 million in the first six
months of 1998 compared with $185.8 million in the first six months of
1997).  Average total borrowings increased primarily due to the addition
of Fidelity.  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 six months of 1998 increased 25% from the first six months of
1997.

                                   Six Months Ended June 30,

Costs of funds:                      1998         1997

     Short-term                      5.64%        5.15%
     Long-term                       6.76         6.84
     Total                           6.45         6.33


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 22% from the first six months of 1997.








<PAGE 13>
                   NORWEST FINANCIAL, INC.
                              
            Management's Discussion and Analysis
 of Financial Condition and Results of Operations, Concluded
                              

Provision for credit losses increased 31% ($130.5 million in the first
six months of 1998 compared with $99.4 million in the first six months
of 1997).  Net write-offs as a percentage of average net receivables
outstanding increased to 1.78% in the first six months of 1998 compared
with 1.61% in the first six months of 1997.  Excluding Fidelity, net
write-offs as a percentage of average net receivables were 1.47% in the
first six months of 1998.  Provision for credit losses in the second
quarter of 1998 increased 42% compared with the second quarter of 1997
($63.3 million compared with $44.6 million).  Net write-offs as a  
percentage of average net receivables outstanding were .85% for the
second quarter of 1998 and .74% for the second quarter of 1997. 
Excluding Fidelity, net write-offs as a percentage of average net
receivables outstanding were .68% for the second quarter of 1998.
Management believes the allowance for credit losses at June 30, 1998,
and December 31, 1997, is adequate to absorb possible losses in the
finance receivables portfolio.

Federal and state income taxes decreased 5% ($66.7 million in the first
six months of 1998 compared with $70.5 million in the first six months
of 1997).  The effective tax rate was 35.2% for the first six months of
1998 and 35.0% for the first six months of 1997.

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 June 30,
1998, lines of credit and revolving credit agreements totaling $1,490
million were being maintained at 34 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 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.

The Company has experienced slower internal growth in receivables and a
reduction in earned rate as a result of prepayments and competitive
pressures causing industry loan standards and pricing to fall below
levels which management considers prudent.  Management now estimates
that Norwest Financial's 1998 earnings will be approximately ten percent
lower than the amount earned in 1997.  Management will continue to
maintain its financial discipline and is confident of the Company's
long-term growth prospects.

<PAGE 14>

                 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:

       Six Months Ended               Years Ended  December 31,
        June 30, 1998          1997     1996       1995    1994    1993

            1.79               2.00     2.11       2.13    2.26    2.22

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, 1997, 1996, 1995, 1994
                and 1993 and the six months ended June 30, 1998.

(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:  August 3, 1998

                              By \S\ Eric Torkelson
                              Eric Torkelson
                              Vice President and Controller
                              (Principal Accounting Officer)