Wells Fargo Financial 10-Q 2000 Q2 Quarterly report

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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

For Quarter Ended June 30, 2000
Commission file number 2-80466

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)

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

    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 10, 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.

PART I. FINANCIAL INFORMATION
WELLS FARGO FINANCIAL, INC.
Consolidated Balance Sheets (Unaudited)
(Thousands of Dollars)

			June 30, 2000		December 31, 1999
Assets
Cash and cash equivalents			$	163,659	$	178,970
Securities available-for-sale				1,138,184		1,224,666
Finance receivables				10,031,023		9,072,306
Less allowance for credit losses				390,542		367,712
	Finance receivables — net			9,640,481		8,704,594
Notes receivable — affiliates				402,107		487,822
Property and equipment (at cost, less accumulated depreciation of $134,573 for 2000 and $130,253 for 1999)				64,645		69,374
Deferred income taxes				139,734		130,496
Other assets				390,123		487,491
		Total assets	$	11,938,933	$	11,283,413

See accompanying notes to consolidated financial statements.

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PART I. FINANCIAL INFORMATION
WELLS FARGO FINANCIAL, INC.
Consolidated Balance Sheets (Unaudited)
(Thousands of Dollars)

			June 30, 2000			December 31, 1999
Liabilities and Stockholder's Equity
Loans payable — short-term:
	Commercial paper		$	2,278,441		$	2,437,676
	Affiliates			593,331			432,199
	Other			187,979			256,916
Unearned insurance premiums and commissions				142,842			140,547
Insurance claims and policy reserves				35,304			34,124
Accrued interest payable				101,428			102,695
Other payables to affiliates				67,601			3,297
Other liabilities				356,366			374,558
Long-term debt:
	Senior			6,085,737			5,913,837
	Affiliate			500,000
		Total liabilities		10,349,029			9,695,849
Stockholder's equity:
	Common stock without par value (authorized 1,000 shares, issued and outstanding 1,000 shares)			3,855			3,855
	Additional paid in capital			209,124			196,697
	Retained earnings			1,402,671			1,407,743
	Accumulated other comprehensive loss, net of income taxes			(25,746	)		(20,731	)
		Total stockholder's equity		1,589,904			1,587,564
		Total liabilities and stockholder's equity	$	11,938,933		$	11,283,413

See accompanying notes to consolidated financial statements.

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WELLS FARGO FINANCIAL, INC.
Consolidated Statements of Income (Unaudited)
(Thousands of Dollars)

			Quarter Ended June 30,				Six Months Ended June 30,
			2000		1999		2000		1999
Income:
	Finance charges and interest		$	452,664	$	402,246	$	901,656	$	801,406
	Insurance premiums and commissions			26,537		123,908		52,185		154,330
	Other income			47,850		55,769		98,323		111,782
		Total income		527,051		581,923		1,052,164		1,067,518
Expenses:
	Operating expenses			200,133		189,930		405,298		379,497
	Interest and debt expense			152,254		125,745		295,799		250,608
	Provision for credit losses			72,584		58,801		149,943		126,883
	Insurance losses and loss expenses			11,384		94,635		24,695		105,620
		Total expenses		436,355		469,111		875,735		862,608
		Income before income taxes		90,696		112,812		176,429		204,910
Income taxes				33,566		41,148		65,162		73,483
		Net income	$	57,130	$	71,664	$	111,267	$	131,427

See accompanying notes to consolidated financial statements.

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

			Quarter Ended June 30,						Six Months Ended June 30,
			2000			1999			2000			1999
Net income			$	57,130		$	71,664		$	111,267		$	131,427
Other comprehensive income (loss), before income taxes:
	Unrealized gains (losses) on securities available-for-sale:
		Unrealized gains (losses) arising during the period		(1,863	)		(15,034	)		(9,374	)		(20,330	)
		Reclassification adjustment for net (gains) losses included in net income		1,075			(3,082	)		(1,298	)		(5,846	)
				(788	)		(18,116	)		(10,672	)		(26,176	)
	Foreign currency translation adjustment			(924	)		2,016			(1,107	)		2,982
		Other comprehensive income (loss) before income taxes		(1,712	)		(16,100	)		(11,779	)		(23,194	)
Income tax benefit related to unrealized gains (losses) on securities available-for-sale				(302	)		(6,315	)		(3,669	)		(8,699	)
Other comprehensive income (loss), net of income taxes				(1,410	)		(9,785	)		(8,110	)		(14,495	)
		Comprehensive income	$	55,720		$	61,879		$	103,157		$	116,932

See accompanying notes to consolidated financial statements.

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WELLS FARGO FINANCIAL, INC.
Consolidated Statements of Cash Flows (Unaudited)
(Thousands of Dollars)

			Six Months Ended June 30,
			2000			1999
Cash flows from operating activities:
	Net income		$	111,267		$	131,427
	Adjustments to reconcile net income to net cash flows from operating activities, net of effect of contributed subsidiaries:
		Provision for credit losses		149,943			126,883
		Depreciation and amortization		24,980			27,341
		Deferred income taxes		(8,956	)		(2,129	)
		Other receivables from affiliates					(47,836	)
		Other assets		(8,488	)		(49,516	)
		Unearned insurance premiums and commissions		2,295			3,727
		Insurance claims and policy reserves		1,180			2,212
		Accrued interest payable		2,723			(3,994	)
		Other payables to affiliates		90,136			(44,173	)
		Other liabilities		(21,927	)		110,256
Net cash provided by operating activities				343,153			254,198
Cash flows from investing activities:
	Finance receivables:
		Principal collected		3,670,810			3,692,815
		Receivables originated or purchased		(4,526,337	)		(4,059,635	)
	Proceeds from sales of securities			58,076			92,857
	Proceeds from maturities of securities			62,952			95,464
	Purchases of securities			(98,906	)		(230,212	)
	Net additions to property and equipment			(6,258	)		(57,238	)
	Net decrease in notes receivable — affiliates, net of effect of contributed subsidiaries			33,673			55,886
	Cash and cash equivalents of contributed subsidiaries received and subsidiary transferred			(6	)		1,002
	Other			53,001			117,943
Net cash used by investing activities				(752,995	)		(291,118	)
Cash flows from financing activities:
	Net decrease in loans payable — short term			(248,356	)		(218,491	)
	Proceeds from issuance of long term debt:
		Senior		685,886			701,834
		Affiliate		500,000
	Repayment of senior long-term debt			(497,999	)		(358,190	)
	Dividends paid			(45,000	)		(100,000	)
Net cash provided by financing activities				394,531			25,153
Net decrease in cash and cash equivalents				(15,311	)		(11,767	)
Cash and cash equivalents beginning of period				178,970			139,184
Cash and cash equivalents end of period			$	163,659		$	127,417

See accompanying notes to consolidated financial statements.

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WELLS FARGO FINANCIAL, INC.
Consolidated Statements of Stockholder's Equity (Unaudited)
(Thousands of Dollars)

									Accumulated Other Comprehensive Income (Loss)
		Common Stock		Additional Paid In Capital		Retained Earnings			Foreign Currency Translation			Unrealized Gains (Losses) on Securities Available- for-Sale			Total
Balance, December 31, 1998		$	3,855	$	189,438	$	1,362,370		$	(13,530	)	$	23,080		$	1,565,213
Comprehensive income:
	Net income						131,427									131,427
	Other									2,982			(17,477	)		(14,495	)
Contributed subsidiaries					7,259		12									7,271
Dividends							(100,000	)								(100,000	)
Balance, June 30, 1999		$	3,855	$	196,697	$	1,393,809		$	(10,548	)	$	5,603		$	1,589,416
Balance, December 31, 1999		$	3,855	$	196,697	$	1,407,743		$	(9,575	)	$	(11,156	)	$	1,587,564
Comprehensive income:
	Net income						111,267									111,267
	Other									(1,107	)		(7,003	)		(8,110	)
Contributed subsidiaries					12,427		(11,168	)								1,259
Transfer of subsidiary							(60,171	)					3,095			(57,076	)
Dividends							(45,000	)								(45,000	)
Balance, June 30, 2000		$	3,855	$	209,124	$	1,402,671		$	(10,682	)	$	(15,064	)	$	1,589,904

See accompanying notes to consolidated financial statements.

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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 $939 million of consolidated stockholder's equity was unrestricted at June 30, 2000.

3.  Other Income.

    Income from affiliates was $9.9 million and $11.5 million for the quarters ended June 30, 2000 and 1999, respectively, and $18.6 million and $23.6 million for the six months ended June 30, 2000 and 1999, respectively.

    Interest and dividends from securities available-for-sale and cash equivalents were $18.7 million for the quarters ended June 30, 2000 and 1999, and $38.6 million and $37.3 million for the six months ended June 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.

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5.  Finance Receivables.

    Finance receivables are as follows:

(In Thousands)			June 30, 2000		December 31, 1999
United States consumer finance:
	Loans secured by real estate		$	2,421,739	$	2,137,593
	Loans not secured by real estate			1,352,562		1,245,427
		Total loans		3,774,301		3,383,020
	Sales finance contracts			1,181,672		1,213,878
	Credit cards			1,016,208		588,499
		Total United States consumer finance		5,972,181		5,185,397
Canadian consumer finance:
	Loans secured by real estate			94,121		86,848
	Loans not secured by real estate			449,432		432,183
		Total loans		543,553		519,031
	Sales finance contracts			464,886		489,259
	Credit cards			17,902		15,655
		Total Canadian consumer finance		1,026,341		1,023,945
Automobile finance				2,270,447		2,165,745
Other				762,054		697,219
		Total finance receivables	$	10,031,023	$	9,072,306

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6.  Allowance for Credit Losses.

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

	Quarter Ended June 30,						Six Months Ended June 30,
(In Thousands)	2000			1999			2000			1999
Allowance for credit losses beginning of period	$	381,978		$	357,213		$	367,712		$	350,984
Provision for credit losses charged to expense		72,584			58,801			149,943			126,883
Write-offs		(79,103	)		(71,695	)		(167,628	)		(147,796	)
Recoveries		15,083			12,995			30,672			27,243
Allowance related to receivables contributed or acquired								9,843
Allowance for credit losses end of period	$	390,542		$	357,314		$	390,542		$	357,314

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 June 30,				Six Months Ended June 30,
(In Thousands)		2000		1999		2000		1999
Cash paid for:
	Interest	$	146,627	$	138,295	$	306,604	$	254,479
	Income taxes		18,457		60,135		22,767		133,275

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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 800 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 191 branches in 33 states and Puerto Rico. Results from insurance operations are included in the appropriate segment.

    Selected financial information for each segment is shown below:

(In Thousands)

	U.S. Consumer Finance				Canadian Consumer Finance				Automobile Finance				Other*					Eliminations				Total
	2000		1999		2000		1999		2000		1999		2000			1999		2000	1999			2000		1999
Quarter Ended June 30,:
Finance charges and interest	$	260,124	$	225,704	$	62,079	$	59,253	$	102,479	$	95,661	$	27,982		$	21,628	$	$			$	452,664	$	402,246
Intersegment income																	11,542			(11,542	)
Total income		315,365		284,281		69,056		66,660		106,517		99,967		36,113			142,557			(11,542	)		527,051		581,923
Net income (loss)		38,551		34,944		4,946		8,996		13,794		14,038		(161	)		13,686						57,130		71,664
Six Months Ended June 30,:
Finance charges and interest		517,934		450,275		123,452		116,564		204,201		191,229		56,069			43,338						901,656		801,406
Intersegment income																	22,939			(22,939	)
Total income		630,659		566,858		136,946		129,592		212,801		199,988		71,758			194,019			(22,939	)		1,052,164		1,067,518
Net income (loss)		79,933		69,993		11,742		16,522		23,649		25,589		(4,057	)		19,323						111,267		131,427

*

Information from other segments below the quantitative threshold are attributable to information services operations, miscellaneous insurance companies, collection services, operations in Argentina and commercial finance operations including rediscounting. Subsidiaries engaged in information services operations were transferred to the Parent on December 15, 1999. Subsidiaries engaged in multiple peril crop insurance were transferred to another subsidiary of Wells Fargo effective June 1, 2000.

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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, that defers the effective date of implementation of FAS 133 to no later than January 1, 2001 for the Company's financial statements. The Company has not yet completed the analysis required to determine the impact on the financial statements.

10.  Business Combinations.

    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.

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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 second quarter of 2000 closely paralleled performance for the first six months of 2000. 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.

    Wells Fargo Financial's net income for the first six months of 2000 was $111.3 million compared with $131.4 million for the first six month of 1999. Net income from ongoing operations, however, increased to $118.4 million for the first six months of 2000 compared with $117.4 million in the first six months of 1999. Net income from ongoing operations excludes the results of subsidiaries engaged in the multiple peril crop insurance and information services businesses.

    Wells Fargo Financial's total income (revenue) decreased 1% for the first six months ($1,052.2 million in the first six months of 2000 compared with $1,067.5 million in the first six months of 1999). Total income decreased 9% for the second quarter ($527.1 million in the second quarter of 2000 compared with $581.9 million in the second quarter of 1999).

    Income from finance charges and interest increased 13% for the first six months ($901.7 million in the first six months of 2000 compared with $801.4 million in the first six 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 six months of 2000 increased 13% from the first six months of 1999; average U.S. consumer finance receivables outstanding increased 15%, average Canadian consumer finance receivables outstanding increased 9%, average automobile finance receivables outstanding increased 8%, and average other finance receivables outstanding increased 19%.

			Six Months Ended June 30,
			2000		1999
Rate of charge on finance receivables:
	U.S. consumer finance		19.05	%	19.04	%
	Canadian consumer finance		24.25		24.84
	Automobile finance		18.60		18.76
	Other		15.31		14.23
		Total	19.22		19.27

    The increases in income from finance charges and interest were due predominantly to growth in average receivables outstanding. This was offset in part by the decline in the rate of charge. Growth in average receivables for all categories was due primarily to regular business activity. Changes in the earned

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rates of charge were due to changes in prevailing market rates combined with a change in the portfolio mix.

    Insurance premiums and commissions decreased 66% ($52.2 million in the first six months of 2000 compared with $154.3 million in the first six months of 1999.) Insurance losses and loss expenses decreased 77% ($24.7 million in the first six months of 2000 compared with $105.6 million in the first six 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 12% ($98.3 million in the first six months of 2000 compared with $111.8 million in the first six 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 7% ($405.3 million in the first six months of 2000 compared with $379.5 million in the first six 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 18% ($295.8 million in the first six months of 2000 compared with $250.6 million in the first six 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 six months of 2000 increased 11% from the first six months of 1999.

		Six Months Ended June 30,
		2000		1999
Costs of funds:
	Short-term	6.27	%	5.07	%
	Long-term	6.56		6.59
	Total	6.47		6.09

    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 12% from the first six months of 1999.

    Provision for credit losses increased 18% ($149.9 million in the first six months of 2000 compared with $126.9 million in the first six months of 1999). Net write-offs increased 14% in the first six months of 2000.

			Six Months Ended June 30,
			2000		1999
Net write-offs, not annualized, as a percentage of average net receivables outstanding:
	U.S. consumer finance		1.25	%	1.18	%
	Canadian consumer finance		2.72		2.15
	Automobile finance		1.56		1.84
	Other		.96		1.14
		Total	1.46		1.45

    During 2000, the provision for credit losses exceeded net write-offs by $13.0 million. At June 30, 2000, the Company had an allowance for credit losses of $390.5 million (3.89% of receivables) compared with $367.7 million (4.05% of receivables) at December 31, 1999. There were no material changes in estimation

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methods and assumptions during 2000 and 1999. Non-accrual finance receivables were $47.0 million at June 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 $106.6 million at June 30, 2000 compared with $110.9 million at December 31, 1999. Management believes the allowance for credit losses at June 30, 2000, is adequate to absorb probable losses on existing receivables in the finance receivables portfolio.

    Income taxes decreased 11% ($65.2 million in the first six months of 2000 compared with $73.5 million in the first six months of 1999). Income before income taxes decreased 14% ($176.4 million in the first six months of 2000 compared with $204.9 million in the first six months of 1999.) The effective tax rate was 36.9% for the first six months of 2000 compared with 35.9% for the first six months of 1999. The increase in the effective tax rate was due predominantly to an increase in state taxes.

    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 June 30, 2000, lines of credit and revolving credit agreements totaling $1,815 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 June 30, 2000, federal funds availability at the two banks was $368 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:

Six Months Ended June 30, 2000	Years Ended December 31
	1999	1998	1997	1996	1995
1.58	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.

(a) Exhibits:

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

(b) Reports on 8-K

No reports on Form 8-K were filed during the quarter for which this report was filed.

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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: August 10, 2000
	By:	/s/ ERIC TORKELSON   Eric Torkelson Senior Vice President and Controller (Principal Accounting Officer)

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PART I. FINANCIAL INFORMATION WELLS FARGO FINANCIAL, INC. Consolidated Balance Sheets (Unaudited) (Thousands of Dollars)
PART I. FINANCIAL INFORMATION WELLS FARGO FINANCIAL, INC. Consolidated Balance Sheets (Unaudited) (Thousands of Dollars)
WELLS FARGO FINANCIAL, INC. Consolidated Statements of Income (Unaudited) (Thousands of Dollars)
WELLS FARGO FINANCIAL, INC. Consolidated Statements of Comprehensive Income (Unaudited) (Thousands of Dollars)
WELLS FARGO FINANCIAL, INC. Consolidated Statements of Cash Flows (Unaudited) (Thousands of Dollars)
WELLS FARGO FINANCIAL, INC. Consolidated Statements of Stockholder's Equity (Unaudited) (Thousands of Dollars)
WELLS FARGO FINANCIAL, INC. Notes to Consolidated Financial Statements (Unaudited)
WELLS FARGO FINANCIAL, INC. Management's Discussion and Analysis of Financial Condition and Results of Operations
PART II. OTHER INFORMATION
WELLS FARGO FINANCIAL, INC.
RATIOS OF EARNINGS TO FIXED CHARGES
SIGNATURES