|                                                             |  |           
|------------------------------------------------------------ |  | ----------
|AAMES FINANCIAL CORPORATION and SUBSIDIARIES                 |  |           
|Computation of Basic and Diluted Net Income per Common Share |  | EXHIBIT 11
|(In thousands, except per share data)                        |  |           



|                                                                         |  |                                  |         |   |      |   |         |  
|------------------------------------------------------------------------ |  | -------------------------------- | ------- | - | ---- | - | ------- | -
|                                                                         |  | Three Months Ended September 30, |        
|                                                                         |  | 2004                             |         |   | 2003 |  
|Basic net income per common share:                                       |  |                                  |         |   |      |   |         |  
|Net income                                                               |  | $                                | 28,417  |   |      | $ | 28,663  |  
|Less: Accrued dividends on Series B, C and D Convertible Preferred Stock |  |                                  | (2,869  | ) |      |   | (3,478  | )
|                                                                         |  |                                  |         |   |      |   |         |  
|Basic net income to common stockholders                                  |  | $                                | 25,548  |   |      | $ | 25,185  |  
|                                                                         |  |                                  |         |   |      |   |         |  
|Basic weighted average number of common shares outstanding               |  |                                  | 7,192   |   |      |   | 6,877   |  
|                                                                         |  |                                  |         |   |      |   |         |  
|Basic net income per common share                                        |  | $                                | 3.55    |   |      | $ | 3.66    |  
|                                                                         |  |                                  |         |   |      |   |         |  
|Diluted net income per common share:                                     |  |                                  |         |   |      |   |         |  
|Basic net income to common stockholders                                  |  | $                                | 25,548  |   |      | $ | 25,185  |  
|Plus: Accrued dividends on Series B, C and D Convertible Preferred Stock |  |                                  | 2,869   |   |      |   | 3,478   |  
|Interest on 5.5% Convertible Subordinated Debentures                     |  |                                  | 522     |   |      |   | 885     |  
|                                                                         |  |                                  |         |   |      |   |         |  
|Diluted net income (loss) to common stockholders                         |  | $                                | 28,939  |   |      | $ | 29,548  |  
|                                                                         |  |                                  |         |   |      |   |         |  
|Basic weighted average number of common shares outstanding               |  |                                  | 7,192   |   |      |   | 6,877   |  
|Plus incremental shares from assumed:                                    |  |                                  |         |   |      |   |         |  
|Conversions of:                                                          |  |                                  |         |   |      |   |         |  
|Series B, C and D Convertible Preferred Stock                            |  |                                  | 85,049  |   |      |   | 85,439  |  
|5.5% Convertible Subordinated Debentures                                 |  |                                  | 824     |   |      |   | 824     |  
|Exercise of:                                                             |  |                                  |         |   |      |   |         |  
|Common stock options                                                     |  |                                  | 7,181   |   |      |   | 7,406   |  
|Warrants                                                                 |  |                                  | 3,410   |   |      |   | 3,178   |  
|                                                                         |  |                                  |         |   |      |   |         |  
|Diluted weighted average number of common shares outstanding             |  |                                  | 103,656 |   |      |   | 103,724 |  
|                                                                         |  |                                  |         |   |      |   |         |  
|Diluted net income per common share                                      |  | $                                | 0.28    |   |      | $ | 0.28    |  
|                                                                         |  |                                  |         |   |      |   |         |