**Exhibit
  11**

**AAMES
  FINANCIAL CORPORATION
  Basic and diluted net income (loss) per common share 
  For the three and six months ended December 31, 2002 and 2001
  (amounts in thousands, except per share data)**

|                                                                     | Three
      Months Ended
      December 31, | Six
      Months Ended
      December 31,
|-------------------------------------------------------------------- | ------------------------------------------- | -----------------------------------------
|                                                                     |                                             | **2002**                                 
|Basic
      net income (loss) per common share:                      |                                            
|                                                                     |                                            
|Net
      income                                                     |                                             | $ 2,080                                  
|Less:
      Accrued dividends on Series B, C and                     |                                            
|D
      Convertible Preferred Stock                                  |                                             | (2,033                                   
|                                                                     |                                             |                                          
|Basic
      net income (loss) to common stockholders                 |                                             | $      47                                
|                                                                     |                                             |                                          
|                                                                     |                                            
|                                                                     |                                             |                                          
|Basic
      weighted average number of common shares outstanding     |                                             | 6,513                                    
|                                                                     |                                             |                                          
|                                                                     |                                             |                                          
|Basic
      net income (loss) per common share                       |                                             | $   0.01                                 
|                                                                     |                                             |                                          
|                                                                     |                                            
|                                                                     |                                            
|Diluted
      net income (loss) per common share:                    |                                            
|                                                                     |                                            
|Basic
      net income (loss) to common stockholders                 |                                             | $      47                                
|Plus:
      Accrued dividends on Series B, C and D Convertible       |                                             |                                          
|Preferred
      Stock                                                |                                             | --                                       
|                                                                     |                                             |                                          
|Diluted
      net income (loss) to common stockholders               |                                             | $      47                                
|                                                                     |                                             |                                          
|                                                                     |                                             |                                          
|Basic
      weighted average number of common shares outstanding     |                                             | 6,513                                    
|Plus:
      Incremental shares from assumed conversion of the Series |                                            
|B,
      C and D Convertible Preferred Stock                         |                                             | --                                       
|                                                                     |                                             |                                          
|                                                                     |                                            
|Diluted
      weighted average number of common shares outstanding   |                                             | 6,513                                    
|                                                                     |                                             |                                          
|                                                                     |                                            
|Diluted
      net income (loss) per common share                     |                                             | $   0.01                                 
|                                                                     |                                             |