**Exhibit 11**

**AAMES FINANCIAL CORPORATION 
  Basic and diluted net income per common share 
  For the three and six months ended December 31, 2003 and 2002 
  (amounts in thousands, except per share data)**

|                                                                   | Three
      Months Ended
      December 31, | Six
      Months Ended
      December 31,
|------------------------------------------------------------------ | ------------------------------------------- | -----------------------------------------
|                                                                   |                                             | **2003**                                 
|                                                                   |                                             |                                          
|**Basic
      net income per common share:**                       |                                             |                                          
|                                                                   |                                             |                                          
|Net
      income                                                   |                                             | $   17,180                               
|Less:
      Accrued dividends on Series B, C and                   |                                             |                                          
|D
      Convertible Preferred Stock                                |                                             | (3,838                                   
|                                                                   |                                             |                                          
|Basic
      net income to common stockholders                      |                                             | $   13,342                               
|                                                                   |                                             |                                          
|Basic
      weighted average number of common shares outstanding   |                                             | 7,030                                    
|                                                                   |                                             |                                          
|Basic
      net income per common share                            |                                             | $       1.90                             
|                                                                   |                                             |                                          
|**Diluted
      net income per common share:**                     |                                            
|                                                                   |                                             |                                          
|Basic net
      income to common stockholders                      |                                             | $   13,342                               
|Plus: Accrued
      dividends on Series B, C and D Convertible     |                                             |                                          
|Preferred
      Stock                                              |                                             | 3,838                                    
|Interest
      on 5.5% convertible Subordinated Debentures         |                                             | 522                                      
|                                                                   |                                             |                                          
|Diluted net
      income to common stockholders                    |                                             | $   17,702                               
|                                                                   |                                             |                                          
|                                                                   |                                             |                                          
|Basic weighted
      average number of common shares outstanding   |                                             | 7,030                                    
|Plus incremental
      shares from:                                |                                             |                                          
|Assumed
      conversion of                                        |                                             |                                          
|Series
      B, C and D Convertible Preferred Stock                |                                             | 85,136                                   
|5.5%
      Convertible Subordinated Debentures                     |                                             | 824                                      
|Assumed
      exercise of:                                         |                                             |                                          
|Common
      stock warrants                                        |                                             | 3,515                                    
|Common
      stock options                                         |                                             | 8,137                                    
|                                                                   |                                             |                                          
|Diluted weighted
      average number of common shares outstanding |                                             | 104,642                                  
|                                                                   |                                             |                                          
|Diluted net
      income per common share                          |                                             | $       0.17                             
|                                                                   |                                             |